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 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



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



China is Mozambique’s second largest investor

Lundi, mars 30th, 2009

China has emerged as Mozambique’s second largest foreign investor in 2008, moving from sixth place in 2007. Its total investment of $ 76.8 million is second only to South Africa. These figures were released at two seminars held in Maputo for business people from Mozambique, Macao and China, to promote partnerships and business collaborations for more investment in the African nation. If these investments are maintained China should soon emerge as the top foreign investor in Mozambique. At present, the balance of trade is tilted towards China, but this can be remedied if Mozambique also pushes investments in Chinese territories.

China has been investing in mining resources, hydroelectric projects and agriculture. Mozambique has been exporting sesame, soy and timber in huge quantities to China. It finds Mozambique conducive for business as it protects property rights, offers flexible repatriation of funds, and has a developed legal framework for settling disputes.

Moza Banco, a Mozambique bank, signed a cooperation protocol with the Bank of China to formally exchange banking transactions of their respective clients. This would ease the business transactions that Mozambique businessmen plan to undertake in Asian markets. The Bank of China happens to be one of the world’s largest financial institutions, and its customers will now be able to pursue their business interests in the African nation with ease. China also happens to be the only country to have its own investment center in Mozambique.

China has invested in 69 major projects in Mozambique, has assisted in infrastructure development, has been running mega farms that have been taken on long leases, and setting up cattle ranches. Statistics reveal an investment of $800 million in agriculture and farming to take rice production up to 500,000 tons by 2013, from the current level of 100,000 tons. China has been seeing its cities and towns expanding with its percentage of arable land consistently decreasing. Therefore, it is leasing large farms in Africa to get adequate supplies of rice to meet its ever-increasing demand, as rice is the basic staple in Chinese diets. Chinese experts are also opening an advanced agricultural institute in Mozambique along with agricultural schools. It would also provide expertise for setting up irrigation channel networks. Fisheries and training of personnel are other areas of interest to China.

Source : China Africa