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



China’s investment in Africa – mutual benefit

Lundi, août 17th, 2009

Initially China confined its major projects into some of the most important industries in Africa. But as of today, in Africa, investments are on a huge scale and China has emerged as Africa’s one of the main investors. The trade between the two countries has grown to about 5 times than before and surprisingly this has taken place within a span of a few years from 2000 to 2006. Britain used to be Africa’s biggest trade partner. But now China has replaced the United Kingdom and has become the third largest trade partner. There are approximately ½ a million Chinese already residing in Africa these days.

The trade union has been extremely beneficial to both the countries. China has gained in the sectors of gas, oil and minerals like uranium. Africa on the other hand is enjoying the latest technological support and a great infrastructure that is being funded by China in most of the African countries. One such country is Tanzania. China has been speedily helping Tanzania in the social as well as economic developments.

As China is opening its markets, it has provided the third world countries a relief as far as the manufactured goods are concerned. The African countries are able to get the end products at much lesser prices thereby keeping the inflation under control. While Africa has shown its business interests with China, Chinese products have a huge market in the African countries. Even the African trade is penetrating the Chinese market at a fast rate.

As a step ahead in this, one of the Chinese companies – China Crescent is focusing on Kenya for further expansion. Kenya will be its next foreign market. Recently the company participated in a conference in Nairobi which is seen as a preparation to enter Kenya market. The main reason behind this is that Kenya already has a network of fiber optic cables that are spread throughout the country. Apart from this there are three projects undergoing which will result in laying 3 submarine cables also. The cables will be connected to India, Dubai and South Africa. This foundation will provide immense support to the Chinese company. Also it intends to increase the population of internet users by providing good equipment and services.

Source : China Africa



Reducing Poverty In Africa – The Chinese Way

Lundi, juin 22nd, 2009

The story of China’s progress can be traced from the days of abject poverty to times of comfort, accomplishment and affluence. Yet it is not something that took place overnight. The long winding road down this economic path has many lessons for others to learn from. One such country that could well benefit from the Chinese experience is Africa, with its millions suffering with the curse of poverty.

China’s lessons on poverty alleviation were recently discussed at a seminar held at Beijing that was attended by diplomats from Africa among other delegates. The Vice President of the International Poverty Reduction center in China or the IPRCC, Huang Chengwei, stated that China would be happy to share its measures to reduce poverty with Africa. Africa is reeling under the impact of the global financial crisis, and the China Africa Cooperation has been helpful in reducing the number of poverty stricken Africans.

China believed in helping its people develop skills rather than ask for aid and financial assistance, and it was these skills that made people get employment and improve their lot. Similarly in Africa also, China is setting up projects that will give employment to the local Africans and help them earn rather than provide food and clothing alone. Other measures being taken as part of Sino-African cooperation is the development of infrastructure facilities, education and medical facilities, improving quality more than quantity of production and also assist in agricultural improvement. China has been instrumental in developing and improving the existing mining facilities in the resource rich African countries. The African countries to benefit include, Nigeria, Angola, Kenya, Sudan, Congo, South Africa to name just a few.

Trade between China and Africa has continued to grow despite the recession and has already crossed the $108 billion mark last year. China has been exporting cheap manufactured goods to the vast African markets besides machinery and equipment, industrial goods and gadgets. In exchange it has been importing minerals and oil from Africa. The China-Africa bonds have consistently strengthened and grown, and there is a steady flow of tourists as well from both sides.

Source : Manufacturers Africa



China and kenya setting up a joint venture for solar energy products

Vendredi, juin 19th, 2009

Solar energy is now going to be harnessed in Africa thanks to a new alliance between Kenya and China to develop a whole range of solar products that will be utilized for the purpose. The joint research project is mainly going to focus on ways of adapting solar panels made for China to the requirements of the Kenyan conditions. The partners from the two sides include an electronic technology company from Kenya and the Natural Energy Resource Research Institute, Gansu in China.

The joint research program has already been approved by the Chinese government and a sum of $386,000 has been allocated for the purpose. Likely to continue till 2012, the project would require the setting up of an office of the Institute in Kenya and some key researchers posted there.

Kenya being a hot country stands to benefit by tapping the vast amount of solar energy available. Till now it has been using electricity generated by using hydropower and oil that is primarily imported. It has a large rural population that is still dependent on wood and coal for cooking and heating purposes. The use of solar energy to meet its energy requirements would transform the power sector completely and the savings made this way could be put in use for other developmental projects that need to be implemented urgently.

The Natural Energy Research Institute is located in Western China and since the time it was set up in 1978, it has trained 500 people in the field of solar technology for Africa. The personnel also include 12 people for Kenya. China is a world leader in the manufacture of solar heaters, and by passing on the technical expertise to Kenya, would be helping the poor nation in a big way.

Once completed the solar energy project would light up schools and homes, health facilities and tourism destinations and help all those who still need to burn lamps in the dark of the night. The renewable solar energy is likely to have a large initial expense but once systems are put in place the solar energy would be harnessed free of cost.

Source : China Africa



China And Africa- Partners In Mutual Benefits

Samedi, mai 23rd, 2009

China has been avid supporter of Africa through thick and thin. It has walked African countries through their difficult days of underdevelopment, helping with aid and assistance that was with no strings attached, and during recent months it has not deserted Africa despite the global economic recession, which has seen demand plummeting and all nations reeling under the crisis. Scholars the world over have lauded China’s role in Africa, helping it emerge out of a state of destitution despite the ‘tied’ aid that went to Africa from the Western countries for decades. China entered the scene in 2000-2001 with its scores of investment initiatives and technical expertise. In a matter of seven or eight years, it has helped reduce poverty, set up the basic infrastructure network and helped African nations start exploiting their rich natural resources to provide employment to the local populace. China has pumped in millions for this purpose and its own elevation in terms of economic development is an example for Africa to follow.

China has also benefited in the process. Firstly, its initiatives have opened a vast African market to cheap Chinese goods. Second, and even more secondly, China has gained access to African natural mineral wealth of products ranging from oil and cobalt to diamonds and titanium. China has realized that its own mineral wealth may not be able to sustain its pace of industrial advancement, and needs additional resources, which are cheaper to source from Africa. Thirdly, it gives a big push to Chinese companies to be able to expand operations in a vast continent. Additionally, Africa has huge amounts of arable land. China with its rapidly growing population and ever expanding urban network, cannot produce enough food for its millions. Therefore, it has taken agricultural land on long lease from many African countries. China’s experiments in the field of food grain production particularly high yielding varieties of rice, are being used in countries like Kenya and Tanzania.

Trade and investment apart, tourism between China and African countries has increased significantly and both sides have benefited. The gains cannot be highlighted enough for Africa, and in turn, China has won a set of international supporters for many years to come.

Source : Manufacturers 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