China And the U.S. Both Look at Ghana

Mercredi, juin 24th, 2009

Africa has been known for centuries as a poor continent and almost every picture of Africa has depicted abject poverty and hunger stricken sad faces of men, women and children. Yet there is now a crazy scramble for all that Africa has to offer, namely rich mineral resources and supplies of oil and energy. The US and China are both trying to woo African countries to ensure a smooth supply of oil. China was way behind in the development race but has caught up at an amazing pace to be a close second in terms of industrial growth and has begun to wield a considerable amount of influence globally. As the second largest producer of oil after the United States, it needs the oil resources just as much. The figures reveal that China got 9% of African oil exports in 2006 as compared to US getting 33%. The US gets double the oil that China gets from Angola, the second largest oil producer in Africa. However, China’s investment and assistance to Angola for the development of its infrastructure far outweighs what Angola gets from USA.

It has literally become a race for African favors in terms of resource supplies between China and the US. China is aggressively pursuing its investment and aid commitments towards Africa, accommodating its requests and pitching in whenever African leaders turn to it for support. It has cancelled African debt to the tune of $10 billion and has made a significant contribution to the growth rate witnessed by many African economies. The US has not yet displayed the same fervor.

The newest country to attract the interest of both China and US is Ghana. Both countries have been involved in oil exploration and large infrastructure projects linked to the energy sector. The US has a major stake in the West African Pipeline, and the project involves a sum of $ 700 million. China has funded the Bui Dam project by providing $600 million for generating 400MW of electricity that will benefit the local Ghana population.

Ghana is at the center of focus for both China and the US. It could benefit tremendously by this and pursue its agenda for development by keeping up the interest of both countries.

Source : Chinafrica



China Africa economic

Mardi, avril 7th, 2009

China has won accolades as the most popular partner of developing countries. This came its way from the Tanzanian President Jakaya Kikwete at the G20 summit. China has certainly been playing an active role in the global economic arena, trying to tone down the impact of the economic crisis by promising aid, increasing trade relations with developing countries particularly those in the African continent. It has written off bad debts and is using its surplus currency reserves to invest in developmental projects in Africa, thereby generating employment and entering sectors that the western nations walked out of, due to the crisis.

China is not merely a quiet investor and trading nation for Africa.  Not only has it moved towards acquiring raw material assets in Africa, it has boosted infrastructure development with its investments. It is sharing technical expertise, helping in improving agricultural output, and ensuring a market for African goods that were losing out as western demand fell drastically. For many African countries, China is the biggest export market. China is adopting every possible strategy to get Africa on to the fast track of development, and is showing its responsibility as an Asian powerhouse and a global economic leader. The first of its kind, an 88-day expedition is starting at Ghana, organized by the Yunnan Committee of the Chinese People’s Political Consultative Conference. The expedition will cross seven countries including Ghana, Burkina Faso, Mali, Niger, Algeria, Libya and Egypt, culminating at the Red Sea and involving a trek of over 7800 kilometers. This is the first time a Chinese team has ventured to cross Africa from the West to the East. Besides studying environmental issues like desertification and preservation of habitats for wild life, the members of the team will serve as goodwill ambassadors for China, and also enhance awareness among their Chinese countrymen about Africa’s developmental and investment potential and tourist charm. There is a growing Chinese middle class with funds to spare for recreational activities, and China is prodding them towards exploring the beauties and bounties of nature that Africa has to offer.

Source : China Africa



China’s Reaching Out to Africa-Reasons for Trade

Samedi, mars 7th, 2009

Every move made by China towards any African country, catches the world’s eye. Chinese leaders making trips to Africa evince great interest and the rationale behind the trips is analyzed and dissected. China is certainly sending strong feelers to African nations, and is getting a positive response from them, simply because China has lots to give. China is perceived by the Africans as the land of enormous opportunity, a country that will provide aid without strings, bring in expertise, develop infrastructure, and invest extensively to pull the countries out of poverty and underdevelopment. The past of the two sides have been similar, except that China surged ahead, and today presents a model for growth to Africa. In return, China has managed to get materials and markets that were not available in any other part of the world. At present, Angola is the second largest provider of crude oil to China, followed closely by Nigeria. It has also procured African copper, zinc, cobalt and uranium. China is making its presence felt in all parts of the African continent, with its oil survey teams in Libya, Egypt and Morocco, it sells arms in return for natural resources in Algeria, Ghana, Benin, Congo and Angola. Extensive trade with Kenya, Sudan, Tanzania and Zambia keeps Chinese ships sailing in and out of every part of the African continent. Mutual economic benefit is the deciding factor for every economic partnership entered into by the two sides. Though one side has more to give in terms of natural resources, the other has a phenomenal amount of talent, expertise and technical know-how that will help tap these natural resources for maximum returns..

However, China has also been affected by the worldwide economic downturn, and part of the plan to stem unemployment and stimulate demand, is to send unemployed migrant workers to farm in Africa. Africa has plenty of fertile land, and needs to replicate the Chinese model of agriculture to increase output and produce world quality natural products to benefit economically. This plan of China would merely be an extension of the previous Sino-African agreement whereby some 400 Chinese farmers were given access to cultivate nearly 10,000 hectares of land.

Source : China Africa