Posts tagged ‘China’

What does Africa expect from Obama?

Experts are optimistic that the re-elected US president Barack Obama will focus on boosting US-Africa trade relations and work towards re-directing private investments and jobs to Africa.

 

Obamas father was Kenyan; he is half- African. Somewhere, Africa feels that an Obama-led America is well-positioned and equipped to help them on their path to economic and social progress by deepening US-Africa trade ties and creating jobs in Africa for the millions of unemployed.

 

In his first-term Obama made only one, cursory trip to sub-Saharan Africa during his first term and made no remarkable efforts like his predecessors to increase US-Africa relations although he defended the African Growth and opportunities Act (AGOA), initiated by President Bill Clinton, to offer African goods unfettered market access into the US.

 

The US was Africa’s biggest trading partner until China beat it to top position. Many US multinationals are already present in the continent and have created many jobs in Africa. When talent is not available locally Africa recruitment agencies are assigned to find skilled professionals looking for careers in Africa to fill up vacancies created in Africa by the US majors.

 

The US could take a cue from China. Chinese run companies are one of the biggest employers in Africa and have created many permanent jobs and contract jobs in Africa. The US must try to beat China and renew its trade ties with the continent. This will be a win-win situation for both continents, as both American and Africa jobs will be created.

 

It is Africa’s hope now that Obama in his Second-term will have Africa on his priority list, will focus on  establishing stronger trading relations like China, establishing more partnerships in sectors like Information Technology (IT), health, education and agriculture that can help economic and social progress and provide jobs in Africa.

 

Nigeria attracts major Investments

VENTURES AFRICA – The Nigerian economy has done appreciably well in spite of the global financial crisis and created jobs for the people.

 

It has attracted investments worth 6.8 trillion naira ($42.6 billion) in nine months, with Gross Domestic Product (GDP) growing at an average of 7.1 percent, driven mainly by non-oil sector.

 

Nigeria has begun concerted efforts to diversify its oil-based economy following the neglect and stagnation of vibrant sectors after it recorded oil boom.

 

Under the government, economic reforms have been initiated to encourage and foster private participation. The Investment Climate Reform Programme is a big success. It (Nigeria) is ranked first in the top five host economies for Foreign Direct Investment (FDI) in Africa, accounting for over 20 percent of total FDI flows into the continent.

 

 

Can Africa learn from China?

(china.org.in) China has taken only 30 plus years to become the world’s second largest economy and create jobs and wealth for its people. Could China’s development path provide lessons to Sub-Saharan Africa – help it grow, increase trade, create jobs?

 

Beginning from a war-torn agrarian economy and high poverty levels China embarked on a reform process that has facilitated more than 30 years of rapid economic and social development growth in the industrial sector fuelled by foreign investment, trade liberalization and expansion.

 

Unlike in most of Africa, the Chinese government has been and is still actively involved in business and playing a critical role in facilitating its economic growth.

 

China has shown that public enterprises can engage in business side by side with the private sector and still remain profitable. Offshore state owned Chinese enterprises are competitively engaged in businesses ranging from oil, road construction to telecommunications in Africa and creating thousands of jobs.

 

 

 

India and China; Asian Tigers battle in Africa

(IANS): The rivalry between India and China will “help boost Africa’s success”. The “traditional Indian grip” was likely to loosen as Chinese investors run across Africa for opportunities.

 

The entry of the two nations to Africa has presented a significant opportunity for growth and integration of the sub-Saharan part of continent into the global economy.

 

Due to the rapidly modernizing industries, booming middle class and burgeoning purchasing power, both countries are competing aggressively in Africa.

 

India enjoys a long history of trade with Africa, and therefore has a strong base in the continent. Indian and Indian origin businessmen boom in the manufacturing sector, retail, food processing and telecommunications. Competing with them is not going to be easy.

 

No country beats China in the extraction sector such as mining, building of power plants and road construction.

 

This shows how asymmetrical the two countries’ commercial strategies are. And in the end, the rivalry between the two will help boost Africa’s success.

 

 

 

How is China investing in Africa?

A news report by the African Development Bank has analyzed trends of Chinese investment in Africa. VOA has the results.

 

Are the Chinese stealing African jobs and trade?

(Daily Nation) The last one decade has seen China increase its presence in Africa. They have invested, manufactured and created jobs for locals in Africa.

 

Africa would possibly not progress had the Chinese not come in with their money, skills and expertise to help build the continent.

 

There are brickbats. China has been accused of robbing the continent of its natural resources, bringing workers from China instead of employing locals and ill treating and under paying local Africans.

 

Recently there were violent protests from local workers in an African mine. Are we going to see the worst in China-Africa relations?

 

Now African traders are complaining that Chinese traders are giving the natives unfair competition. Cheaper, low quality Chinese products are entering the markets. There is concern about the inferior quality and competition in the domestic markets.

 

In Zambia and Tanzania, the complaints are that Chinese traders are in businesses meant for natives.

 

A time has come when Africans examine the reality on the ground. Are they allowing the Chinese too much ground in their affairs? Policy makers should address these serious concerns.

 

China to Develop Cotton Production in Africa

Bloomberg reports that, China, the world’s largest cotton importer and user, will promote and develop planting of the fibre in four African countries.

 

China will provide seeds, machinery, fertilizer and other materials to help promote planting in Benin, Mali, Chad and Burkina Faso under the World Trade Organization framework, will also provide technical support and training on crop management to help the industry expand,

 

Africa is an important source of China’s imports of more than 2 million metric tons every year. Such cooperation will help boost cotton production in Africa.

Global Sources’ 2nd Annual China Sourcing Fairs in South Africa

JOHANNESBURG, Nov. 30, 2011 — /PRNewswire-Asia/ — Global Sources today opened its 2nd Annual China Sourcing Fairs in Johannesburg. With more product categories this year filling four exhibition halls, the events are the largest China-products exhibitions ever to be held in Africa.

 

“Africa’s trade with China is booming and the expansion of China Sourcing Fairs in Johannesburg is representative of that growth.”

 

China has emerged as Africa’s largest trading partner, and trade between China and Africa is also set to reach record levels this year. More than 2,000 Chinese companies invested in Africa by the end of 2010.

 

The China Sourcing Fairs feature manufacturers of consumer electronics, solar and energy-saving products, fashion accessories, garments and textiles, baby and children’s products, gifts and premiums, home products, and hardware and building materials. The Fairs are exclusively for importers, traders, and other volume buyers who purchase consumer products for resale to markets throughout Africa.

Chinese step up treatment of Zambian workers

The BBC reports that, the behaviour of Chinese companies in Zambia, and how they treat their African workers, was an underlying issue in the recent elections. Some Chinese companies say they are taking steps to deal with the problem.

Last year in the Collum mine incident demand for higher wages led to violence between the Zambian workers and their Chinese Managers.

Zambians acknowledge the Chinese have brought the country much-needed money and jobs as they continue to invest in a region rich in natural resources.

Yet, Most Zambians believe their country could and should do better out of the trade deal with China.

Improvements

The Collum coal mine have made some changes like doubling the salaries for coal miners and  hiring a Zambian human resources officer Basically, his role is to make sure the labour laws of this country are adhered to, to protect the interests of this company, and the interests of the workers.

But the workers are still not happy as wages are low.

Workers in Chinese copper smelting also voice similar gripes.

Nevertheless, some Chinese companies are making a big effort to improve relations and using and training local people

A brighter future?

The newly elected president welcomes Chinese investment but wants this investment to benefit the Zambians and the Chinese both.

He added that Chinese companies must abide by local laws, and observe limits on how many foreign workers they bring in to the country – a popular complaint in Zambia, as many Chinese companies use workers from China to do jobs Zambians could do.

China feels that The Chinese companies here in Zambia are as good as the Chinese companies working in other countries. But acknowledges there’s still room for improvement in how Chinese companies do business in Zambia.

 

South Africa prefers Chinese investment over the Dalai Lama’s visit?

The BBC reports that, The relationship between Africa and China is changing bringing in the much needed investment, trade and providing jobs in Africa.

The spiritual leader of Tibet, the Dalai Lama, cancelled a trip to South Africa for the 80th birthday celebrations of fellow Nobel Peace laureate, Archbishop Desmond Tutu.

The South African government has come under criticism for bowing to Chinese pressure and denying a visa to the Dalai Lama.

The Dalai Lama was welcomed into South Africa during Nelson Mandela’s presidency, but more recently has been denied entry as relations between China and South Africa strengthened, though South Africa denies this as the reason.