Shabait – Asmara, 21 September 2011 – President Isaias Afwerki held talks in New York on September 20 with the Presidents of Guinea and Senegal as well as the Chinese Foreign Minister.

In his meeting with President Alpha Conde of Guinea, President Isaias and the Guinean leader agreed to work together towards enabling Africa to solve its own issues, play due role at international forums taking into account the number of the people and resources, as well as strengthening cooperation among African countries and reinforcing the AU. They also agreed on Eritrean-Guinean collaboration in essential development sectors.

Likewise, in his talks with President Abdoulaye Wade, President of Senegal, which focused on developments in Africa, President Isaias and the Senegalese leader agreed to work together in strengthening the African Union.

In his meeting with the Chinese Foreign Minister, Mr. Yang Jiechi, President Isaias expressed Eritrea’s expectation that China, which is registering all-round progress, to make major contribution to Africa in its endeavors to ensure the wellbeing of its people. The Chinese Foreign Minister on his part elaborated that his country will do its level best to promote Africa’s development.

Moreover, reporters of the Ministry of Information indicated that the two sides pointed out that Eritrean-Chinese relations is both exemplary and productive, besides reaching understanding that the two countries to work together so as to enhance cooperation, particularly in trade and investment.

China in Africa

Amanuel Biedemariam

Over the last decade China has received a favorable PR on the way that it deals with Africa. The perception is that China’s a-political approach of engaging Africa is good for Africa. It is also deemed that China’s economic investments are positive for Africa. The low bid contracts by Chinese companies are seen to be good alternative from the West that traditionally strangulated Africa with debt. China is helping African countries develop some capacities in various fields. These are amongst some of the advantages China provides African countries.

In November of 2006, China organized probably the largest gathering of African countries outside Africa a “China Africa Summit”. The gathering was hailed by African leaders because they believed it to be a good sign for future China-Africa relations. There were press accounts detailing satisfaction of African countries because they perceived that China was looking to partner with African countries. The very fact that China held the gathering was a big deal, a-first for Africa and, a knock at Western nations that treated Africans with utter disrespect for generations.

China’s involvement with Africa has its critics and supporters. The most glaring objection is that China is dealings with countries that the West claims-have bad human rights records. China is accused of encouraging corruption and corrupt leaders. China is criticized for not focusing on governance and human right issues. And for systematic denial of African countries from manufacturing their own products because of China’s insistence on selling products produced by China. In a nut shell this is the extent of the critical view China gets from the West.

China is the “anti West” in the way that it deals with African countries. For example in Ghana, a $270 million loan facility to carry out expansion works at the Kpong Water Project was agreed upon between the government of Ghana and China. What is different about the loans China provides Africa is the fact that these countries can use their resources, in effect bartering in exchange for projects, goods and services that these African countries need in this case, water. The Chinese have a lot of dollars that they must dump. This is leverage that Africa never had with the West.

What does it mean when we say is China a friend of Africa? How should friendship between China and Africa be defined? How deep of a friendship is China cultivating in Africa? How good of a friend is China to Africa? What does China’s friendship mean to African countries? And the main question; is China a friend of Africa?

For a layman and according to various dictionaries, a friend is: a person whom one knows, likes, and trusts; an acquaintance; an ally in a struggle or cause; a comrade; one who supports, sympathizes with, or patronizes a group, cause, or movement and, a member of the Society of Friends.

Using the basic understanding of the meaning of friendship, can Africa trust China; consider China as an ally and be confident that China is a comrade in the struggle towards economic emancipation and development? Can Africa “trust” China to support and be the party that stands for the security of Africa?

The attention China received for her dealing with Africa collectively was partly accentuated by China Africa Summit in other words self made. One thing that needs to be clear however, Africa is not one nation. Therefore, it is impossible to paint China-Africa relations with one brush and as such; fair to ask some basic questions in order to have a common-basic understanding of what China means to Africa. It is also important to look at history of relations of other nations for example, Great Britain and the US as a standard. It is important to see the historic interaction of UK and US in the realms of economic cooperation, cultural relations, friendly ties, political/diplomatic co-ordinations and importantly on national and global security matters as a guide…

Is there a country in Africa that has ties with China that remotely resembles the example above? Does China have allied countries in Africa? During the Cold War, the alliances were almost clearly defined. The countries that were pro-West received support from the West led by the US, and vice versa. Can African countries count on that type of support from China? While the author is not an advocate of Africa divided based on the interests of super powers; it is important to note that countries enjoyed qualified diplomatic and military support during that era from one side or the other. However, while the current world is considered to be multi-polar, the main powers are the US and China. These are veto wielding powers capable to impose their will on any nation around the world. Ironically, while the US is clear on whom their friends are and her interests; it is extremely difficult to gauge China’s intentions. And absent of any pronounced friendship with any country in Africa it is nearly impossible to say where China stands with any nation.

It is important to ask these questions of China considering the extent of China interaction with Africa over the last thirty years. It is even more crucial in light of the resolutions United Nations Security Council (UNSC) produced over the last ten years that profoundly impacted many countries in Africa. In 2005 alone, nearly 80% of the 70 deliberations and decisions the UNSC made were related to matters in African countries with the Middle East coming far-second and Third World countries such as Haiti and Bosnia Herzegovina filling-in the blanks. The reality is 2005 is not an aberration it is the annual reality in the UNSC. And the problem is the fact that the UNSC is making all these decisions without the affected parties having a say and a fighting chance against decisions that are affecting these nations in some cases altering the social landscapes violently. Moreover, the role China played or lack thereof is by far the most perplexing.

One needs to look at some of the recent developments in Africa pertaining to Libya, Sudan, Eritrea and others vis-à-vis Security Council decisions that the West and particularly the US perused in the region. China went along with decisions when it seemingly could impact its national interests. These decisions raise some serious questions about Chinese intentions and dealings in Africa.

China has been in Sudan for decades and it is one of the reasons why Sudan remained viable. China has heavy investments in Sudan primarily in the oil sector. China imports an estimated 7% of its oil from Sudan. Moreover, China has a sizeable human-resources invested in various sectors. In other words China’s investments in Sudan are numerous, extensive and took decades for China to build it that level. Yet, when we look at the future security and stability of Sudan, the West led by the US appears to be on the driver’s seat basically dictating terms while weakening Sudan and nailing wedges designed to fragment the nation into pieces. It is ironic because the US pushed measure after measure using the UNSC that China can stop using its veto power.

Moreover, if one is to add Eritrea into the mix it makes one wonder what China’s underlined interests are. Nearly all of China’s goods from Sudan are channeled through the Red Sea. Eritrea owns a large and strategic lane on the Red Sea. Eritrea is also bordered by Sudan. If Eritrea is to be what Ethiopia and the US wanted to be (an entity under their control in whatever shape or form); then Sudan would be encircled by countries that are propped by the US and, the US would have assumed control over the entire eastern part, the Horn, and the Northern parts of Africa.

The US is in Djibouti, Ethiopia, Kenya, Uganda, South Sudan, Rwanda and Egypt. The only countries left are Sudan and Eritrea. If the US is to succeed by accomplishing what they planned for Eritrea after World War II, then Sudan would have no fighting chance because it will be encircled. Moreover, US and her allies would have controlled the entire Red Sea territories namely Egypt, Sudan, Eritrea, Djibouti on one side and, Saudi Arabia, Yemen on the other. They will have the chokehold for any shipment that sails through that area. A good example to glean from is the Suez Canal and Iran. Eritrea controlled by the US can potentially limit China’s access to the area and give US the upper hand in the region.

It is with this background in mind that the author questions China’s role. Why is China allowing the US to pass measure after measure to pressure Sudan and Eritrea? The US, on Xmas Eve of 2009 imposed a sanction measure, by concocting lies and fabrications in the most brazen way that disregarded the existence of the people of Eritrea. They used a mechanism and methodology that denies Eritrea a say and moved along with a sanction.

In Libya when the UNSC authorized the No Fly Zone, this is the statement by China’s Ambassador to the UN LI BAODONG:

“The continuing deterioration of the situation in Libya was of great concern to China. However, the United Nations Charter must be respected and the current crisis must be ended through peaceful means. China was always against the use of force when those means were not exhausted. His delegation had asked specific questions that failed to be answered and, therefore, it had serious difficulty with the resolution. It had not blocked the passage of the resolution, however, because it attached great importance to the requests of the Arab League and the African Union. At the same time, he supported the efforts of the Secretary-General’s Envoy to resolve the situation by peaceful means.”

“The UN adopted Resolution 1973 (2011) by a vote of 10 in favor to none against, with 5 abstentions (Brazil, China, Germany, India, Russian Federation), the Council authorized Member States, acting nationally or through regional organizations or arrangements, to take all necessary measures to protect civilians under threat of attack in the country, including Benghazi, while excluding a foreign occupation force of any form on any part of Libyan territory — requesting them to immediately inform the Secretary-General of such measures, to establish a ban on all flights in the airspace of the Libyan Arab Jamahiriya in order to help protect civilians.”

LI BAODONG statements are very troubling. Firstly, he stated that China wants the situation to have a peaceful end. And secondly China is against use of force. He continues, his delegation had asked specific questions that failed to be answered and, therefore, it had serious difficulty with the resolution. The most troubling statement however is, “It had not blocked the passage of the resolution, however, because it attached great importance to the requests of the Arab League and the African Union,” and passed a resolution with a vague and open-ended language that allowed NATO to destroy Libya in the name of protecting civilians.

The Irony, first of, the African Union was disregarded. And secondly, this was taking place in the most turbulent times in the history of the Middle East when countries were embroiled on their internal civil struggles. China passed the resolution not to protect the best interest of the people of Libya but to satisfy a nonexistent or a nominal Arab League and African Union. It is even more perplexing considering the number of Chinese that worked in Libya and the amount of investment that China had in Libya.

This begs the question; why is China allowing punitive measures against nations that are friendly; nations that are doing business and, nations that have accepted not only the diplomatic core but the Chinese people all around Africa? Why is China allowing the US and Western nations to take advantage of UNSC resolutions for their hegemonic objectives. The No Fly resolution was just a hook because soon after the decisions were made the French, UK and US did bait-and- switch, called for a regime change and escalated the operations including sending advisors into a civil war. The people of Libya are being terrorized by the most intensive bombing campaign the continent of Africa has ever seen. The people of Libya are being exposed to depleted uranium; Libyans are suffering and not better off. And contrary to China’s wish of peace, Libya is ensnared by violence of the brutish NATO forces. In short, China’s repeated abstentions do not absolve it from the responsibilities.

Conclusion

Dambisa Moyo and others have said a great deal of good about China’s economic programs in Africa. However, no-economic success means a-whole-lot unless coupled by peace. Africa’s problems are chronic by design and they continue because the West is intent on keeping Africa crippled. China was Africa’s first and best hope to counterbalance the negative role the West continues to play in Africa. Instead, China is tacitly accepting the label of new colonizer of Africa. On a setting that resembles a Hollywood’s scary witch-movie, Secretary Hillary Clinton stood on a dark room on a podium in Ethiopia and warned Africans to beware of the new colonizers that do not care about Africa. Her statements are evidence that Africa has effectively turned in the dinner table of hyenas and lions fighting for a carcass only this time; it is with the impending holocaust of the African continent.

The question is what can Africans do? The UN/UNSC is an organization designed to benefit the five permanent members at the expense of the world. The UNSC has literally turned the international order into that of the Jim-Crow laws that punishes without representation, due process and to send a message. They have established systems they can manipulate as they wish like the ICC that they are using to petrify leaders such as Beshir to get what they want. They are penalizing the people of entire regions based on their national interest-considerations and denying them the right to live in peace. Moreover, these are people that have never been able to establish institutions that can sustain them in bad times such as draught. The continuation of this holocaust is reaching biblical proportions. Yet, they are escalating these strategies.

The reality is there is no recourse for these transgressions and deliberate injustices. Therefore, the responsibility befalls on those countries that are being negatively affected by the injustices. Hence, the only solution is for nations to abandon the defunct UN and disqualify its purpose and create a mechanism to deal with world matters. Moreover, united vigilance of the people is far more important than ever because they are openly returning Africa back to the colonial era. China could also assume the just role of defending African because ultimately that will serve its interests in the right way.

awetnayu@hotmail.com

Financial Times Blog – China is not the only country intent on taking a bigger slice of Africa’s resource sector. An Australian government report out on Tuesday said 220 of the country’s mining and oil companies now operated in 42 African countries. Their projects have tripled in number to 595 in the past six years, although this has not yet translated into more commerce: two-way merchandise trade between Africa and Australia has flatlined at about A$5.4bn in recent years.

Ahead of this week’s mining Indaba, a big conference in Cape Town, Australian officials are keen to emphasise the credentials of their home-grown mining companies, presumably with an eye to building stronger economic links between the continents.

Mining is Canberra’s trump card. The Australian mining sector is one of the most developed and technologically advanced in the world and includes industry big boys like BHP Billiton and Rio Tinto all the way down to tiny explorers as well as a host of equipment and service providers.

Greg Hull, Australia’s trade commissioner to sub-Saharan Africa, says much of Africa’s natural resources are still unexploited and the prices for its commodities, ranging from coal to iron ore, will be underpinned by demand from China and India.

“It’s a very competitive continent and it’s exciting compared with the mining industry in Europe and the US,” he says.

Australia’s reinvigorated interest in Africa may also have a political dimension.

Kevin Rudd, Australian’s foreign minister, wants to secure one of the non-permanent seats on the United Nations Security Council and Africa’s support could be crucial to that goal when the vote is taken next year.

When he met a host of African leaders during a trip to Addis Ababa, Ethiopia, last month, Rudd said Australian companies had already ploughed A$20bn into African mining projects. Canberra, he added, wanted to look west across the Indian Ocean to deepen its engagement with Africa.

Four-time World Half Marathon champion Zersenay Tadese from Eritrea finished second place in 1:00:11 behind Kenya’s Wilson Kiprop 1:00:07 at the IAAF World Half-Marathon Championships in Nanning, China. Tadese gave his best to defend his title during a tight race against Kiprop. The Kenyan took the lead just a few metres before crossing the finish line.

A universal bank that caters for all sectors of the economy, including agriculture, domestic trade, finance, transport and fisheries, the Commercial Bank of Eritrea is committed to a dynamic financial sector in Eritrea.

With a mission to provide credit facilities for Eritreans to realize their business dreams, the Bank enjoys an 85percent share of the market, making it the largest commercial institution in the country.

General manager Yemane Tesfay is convinced that Chinese participation will add extra value and efficiencies to the bank and its clients, and bring much-needed competition to the banking sector.

“As a banker for 30 years, I am pro-competition, so a Chinese investor taking control of the management of the bank would be good for Eritrea and good for the investor.

“We have a network of branches all over the country, even in the rural areas, so there is a solid base laid. The infrastructure is there, the reputation is there, public confidence is there and on top of all that, we have a young and educated workforce and can communicate in different languages. Taking China’s general interest in Africa into account, I am optimistic it will be beneficial for both sides.”

Internationally minded

Tesfay believes it is the bank’s asset base and capitalization under the Basel II agreement that secured its inclusion as one of The Banker magazine’s Top 100 African Banks.

The bank also prides itself on having relationships with around 30 correspondent banks in Europe, the US and the Far East, and on being a member of the SWIFT family.

These factors, along with a computerized banking system and systematic training programs for staff, all point to an internationally minded institution. “We would like to establish more links with China,” Tesfay said. “If there are goods and services going back and forth between the two nations, there is no reason why we cannot have a strong relationship.

“Being State-owned, our banks are not as efficient as they could be. Chinese investors can enjoy the first-bird advantages if they come and participate now. It will be a pleasure to serve their investments.”

Source: China Daily

Since it was established in 1993, shortly after Eritrea’s independence, the Bank of Eritrea has played a pivotal role in the country’s development, helping to foster economic growth and regulating and building a sound financial environment.

While striving to maintain a healthy and sustainable balance of payments and strong exchange rate policy, the bank also works to advance and protect the interests of consumers and businesses.

In recent years, Eritrea has succeeded in maximizing its competitive advantages for growth and development, and now offers a host of opportunities in mining, tourism, agriculture and fisheries. It has also attracted foreign direct investment on an unprecedented scale.

The promotion of Eritrea’s investment-friendly climate is one of the bank’s key objectives in the coming years, according to Kibreab Weldemariam, acting governor of the Bank of Eritrea.

“To make ‘further investment’ possible, the Bank of Eritrea will make the utmost efforts to strengthen its regulatory capacity, modernize its payment system, and improve its human and technological capacity,” he said. “We encourage foreign investors, whether from China or any other foreign country to come to Eritrea and establish banks or financial institutions in the country.”

Among the many opportunities and benefits for investors is the easy access to the facilities Eritrean banks provide. “Investors are allowed to open foreign currency accounts, and operate them freely, without any restrictions or limitations,” Weldemariam pointed out. “They are also entitled to full repatriation of the profits they make and to retain their export revenues and proceeds in their foreign currency accounts.”

Given the political and social upheavals in neighboring countries Eritrea offers stability and security for investors. They also benefit from excellent road and sea links, and Eritrea’s strategic location on the Red Sea trading route – one of the busiest trading routes in the world.

The country’s free zones, at Massawa and Assab, provide excellent facilities for Chinese trade, shipping and logistics companies including the use of warehouses, which can be utilized as distribution centers for Middle Eastern and African countries. Investors can also use the free zones to export items manufactured within the country to other nations, and to establish shipping lines in Massawa or Assab to transport goods throughout Africa by land or by sea.

Almost 20,000 vessels a year pass Eritrea loaded with some 700 million tons of cargo – more than 9 percent of the estimated 7.7 billion tons carried by global shipping. The Massawa free trade zone encompasses about 5,000 hectares, including the port and airport. Authorities have invested tens of millions of dollars in preparing the infrastructure.

A strong trading bond

Chinese and Eritrean trading relations go back as far as its independence, withChina showing the will to partner and establish a friendly relationship with Eritrea. As Weldemariam explained: “China understands Eritrea’s needs and development policies, and because of that, we have developed a close relationship with them.

“Respect for other nations and non-interference in the internal affairs of other countries is one of the important principles on which China bases its foreign policy. Eritrea believes in that too.”

In the last few years, China has made significant contributions to Eritrea’s development, especially in infrastructure, such as hospitals, roads, schools and other buildings. China also supports Eritrea in developing its industrial, agricultural and mining sectors. Trade between the two countries continues to grow.

To conclude, Weldemariam said: “I would say to Chinese traders and businessmen that Eritrea is a virgin country and that every aspect, be it the security, the friendliness and openness of our people, or the climate, is condusive to foreign investment.

“There is a great opportunity for Chinese investors to participate in developing Eritrea’s global reach in tourism, fisheries, infrastructure, and agriculture.”

Source : China Daily

Chinese Cargo

New equipment, technology, knowledge and skills are rebuilding a proud nation

Blessed with large deposits of precious minerals such as gold, silver, copper and zinc, Eritrea offers foreign investors a wealth of opportunities in the mining sector, while the agriculture, tourism, fisheries and manufacturing industries also possess huge potential.

President Isaias Afewerki is determined to transform Eritrea into the Horn of Africa’s logistics hub, as the country of 5.6 million people capitalizes on its 1,151-km long Red Sea coastline and access to one of the world’s busiest trade and shipping routes.

As the African nation’s preferred commodity partner, China is playing a key role in Eritrea’s socioeconomic development through the supply of aid, capital, machinery, technology, knowledge and skills.

Chinese enterprises and equipment are also widely involved in the rebuilding of vital infrastructure such as roads, airports, power and telecommunications, schools and hospitals.

“Our priority has been the creation of a good climate for investment and development,” said Afewerki, who took office in 1993 as head of the People’s Front for Democracy and Justice (PFDJ).

“Eritrea can be a gateway for investment in Africa if we can take advantage of our excellent strategic location. Our partnership with China, even though it is in its early stages, will dramatically change the reality in this country and give us a greater global interaction.”

According to the president, the mining, fisheries and agricultural sectors, especially cotton production, are best suited for Chinese investment as they will utilize the country’s natural resources and generate substantial exports revenues.

“The potential for cotton cultivation is huge and a key part of our agricultural program is the introduction of new technology,” he said.

“We are developing our agricultural infrastructure and, in partnership with China, are developing a textile industry. The initial commitment with China for cotton exports is already in place. We have begun with very modest programs but we need to expand them.”

Tightening bonds

Chinese Ambassador to Eritrea, Li Liansheng, has welcomed these and other positive developments as he looks to strengthen these political, commercial, industrial and social bonds.

“The Eritrean government is trying to invite Chinese companies to make Eritrea a trading and transportation center for Chinese goods,” he said. “There is particular potential and interest for Chinese companies in Eritrea’s strategic location at the gateway to the vital trade and shipping route on the Red Sea.”

A core pillar of Eritrea’s modern economic policy is the setting up of new free trade zones that will generate fiscal growth, create jobs, boost government revenue and raise the country’s profile on the global stage.

With a strategic location on international shipping lanes, Eritrea offers exporters and investors easy access to foreign markets, with up to 40,000 cargo ships a year – carrying some 700 million tons of cargo – passing close to its coast.

In order to capitalize on these commercial opportunities, Eritrea is building a series of modern free trade zones comprising factories, warehouses, offices, roads, airports and transport facilities. The first free trade zone will commence operations shortly at Massawa after the government invested millions of dollars in the transformation of 5,000 hectares of land next to a former naval base.

Chinese enterprises are among the foreign firms that will be based there and benefit from a tax-free environment in which no direct or indirect taxes are paid on sales or profits.

A second facility at Assab will open later this year and officials have plans for similar developments across the country, including one focused on agro-businesses near the border with Sudan.

The ‘multiplier’ effect

According to Eritrea Free Zones Authority CEO, Araia Tseggai, the free trade zones will stoke the economy through the “multiplier” effect of employment, training and education opportunities and act as a magnet for foreign investors.

“We feel they are a good place for Chinese companies to secure and buy resources from Eritrea, process them there and take them to China or use them for their own purposes anywhere in the world,” he said.

“Looking ahead to the imminent openings of the new free trade zones at Massawa and Assab, Tseggai emphasized the importance of Eritrea’s location in the Horn of Africa and revealed that while the Massawa facility will focus on manufacturing, the sister zone at Assab will be aimed at transshipment-related operations and services.

“Cargo ships are always passing and this element is crucial as most of the shipping firms will end up stopping here and picking up their produce to wherever they are going,” he said.

“Chinese enterprises always carry out relatively large projects so if the Chinese start up businesses and logistical operations here it will be very important for our current and future operations as they are significant investors.”

A leading figure in Eritrea’s import and export sector – and an organization that is sure to benefit from the presence of the free trade zones – is the government-owned Red Sea Trading Corporation.

Established in 1984 as a commodities trading business, the non-profit firm performs a wide range of operations. It handles commodities such as sugar, grain and oil and the bulk of its trade is with China, where it is looking for further business opportunities.

“Our priority has shifted to China – the more suppliers you get, the more chances you have to obtain different brands of commodities and products,” said Red Sea Trading Corporation general manager, Negash Afworki.”

As the government’s head of economic affairs, Hagos Ghebrehiwet is responsible for overseeing the development of many of Eritrea’s State-owned enterprises in a range of sectors. “We have to become independent and develop our resources,” he said. “We need investment and assistance that allows us to stand on our own two feet, as well as being mutually beneficial.”

Building connections

Meanwhile, helping firms connect to the world in today’s technology-dependent society is EriTel. The country’s sole telecommunications provider is State-owned and is committed to improving its infrastructure and network coverage with the help of Chinese equipment, technology and human resources.

“We have replaced the old analogue equipment across the country with new digital telecommunications technology and have installed solar energy systems in areas where there is no electricity so that the mobile systems work 24 hours a day,” EriTel general manager and CEO, Berhane Tesfaselassie said.

“The Chinese are helping our development in many areas and I really appreciate their contribution to Eritrea’s telecommunications sector and their cooperative and understanding attitude.”

Such technological improvements are a key component of the growth of the Housing and Commerce Bank of Eritrea.

Founded in 1994, the Asmara-based bank offers individual and business customers a wide range of financial products and services such as savings and deposit accounts, private and commercial loans, plus international money transfers.

“Even though 60-70 percent of our activities and transactions are still involved in real estate, we do provide all the normal services that a bank should offer,” said Housing and Commerce Bank of Eritrea General Manager, Berhane Hiwet Ghebre.

“We are trying to open new branches in remote areas so everybody can benefit from our banking services and we really care about corporate social responsibility.”

Source: China Daily

HARARE, March 16  – China respects the sovereignty of African countries and will never interfere in their internal politics, says a senior Chinese official.

Speaking at a briefing in Harare on China-Africa relations Monday, Chinese foreign policy advisory group member Ji Peiding said Beijing respected the independent choice of development path of African countries and never imposed its will on them, reports government owned Zimbabwean news agency New Ziana .

“China and African countries have diversified, pragmatic and fruitful co-operation with 900 projects so far undertaken and 310 amounts of debts for 35 counties having been cancelled in the last 10 years,” he said.

The Chinese government has, over the past decade, made tremendous inroads into the continent, attracting jealousy of Western countries which have accused it of pursuing a colonial agenda.

Ji said China had put in place measures to strengthen relations with African countries in various spheres, including addressing climate change and enhancing co-operation in science and technology.

“We are helping Africa build financing capacity, opening up China’s market to African products and enhancing co-operation in agriculture,” he said.

China would provide medical equipment and anti-malaria materials worth 500 million Renminbi to 30 hospitals and malaria prevention and treatment centres it had built in Africa, he added. It would also train 3 00doctors and nurses for Africa, he said.

Ji said China would extend support towards human resources development and education through building 50 China-Africa friendship schools as well as train 1,500 school principals and teachers from African countries.

He said his country would also by 2012 increase the number of Chinese government scholarships for Africa to 5,500 as well as train a total of 20,000 professionals in various fields over the next three years.

Zimbabwe’s Acting Foreign Affairs Minister, Dr Stan Mudenge, praised the Chinese government for its unwavering support to Zimbabwe and Africa.

“The mutual respect has led China to support the oppressed nations and developing countries in their struggle to win and preserve national independence and develop their national economies,” he said.

Mudenge noted that China had assisted a number of African counties, including Zimbabwe, achieve their independence.

MANCHESTER, UNITED KINGDOM–(Marketwire – Feb. 15, 2010) – The 2009 gold production statistics indicate that South Africa has dropped to third place in the table of the world’s leading gold producers.

Once the world’s biggest producer, by quite some way, South Africa saw its gold production fall a further 5% during the course of 2009. The nation produced a total of 222 tonnes during the year. South Africa remains the biggest producing nation on the African continent, however, by a massive margin. Ghana, the second biggest gold producer from the continent, produced just 80 tonnes.

However, South Africa now lags behind both China and Australia on the global gold production scale. While Australia produced just marginally more of the precious metal, China produced a huge 330 tonnes during 2009, positioning them comfortably at the top of the table.

While demand for gold remains high, with both new and experienced investors alike rushing to buy gold in the face of an inconsistent dollar, the mining industry faces tough competition from scrap recycling.

Gold does remain an attractive investment, however, with a more diverse demographic taking advantage of online gold trading websites such as Gold Made Simple, to purchase the precious metal. The increasing popularity of online gold trading means the process is now less elitist and with the commodity receiving more press attention than ever before, its popularity with investors looks set to continue to rise.

A senior official of the Communist Party of China (CPC) met on Tuesday with Djibouti President Ismail Omar Guelleh and Prime Minister Dileita Mohamed Dileita on ways to enhance ties between the two nations, according to reports from its capital Djibouti.

China and Djibouti have strengthened their political trust and conducted mutually beneficial cooperation since they forged diplomatic ties in 1979, said Wang Jiarui, head of the International Department of the CPC Central Committee.

The two countries have maintained close coordination on international affairs, Wang said, adding that relationship between the CPC and Djibouti Popular Rally for Progress (RPP) has become an important part of bilateral ties.

China is willing to work together with Djibouti to boost mutual understanding and friendship between the two peoples, and strengthen exchanges between the two parties and two countries, he said.

President Guelleh, who is also RPP chairman, said Djibouti is ready to promote its pragmatic cooperation with China, a major partner of the African nation, so as to benefit the two peoples.

Prime Minister and RPP Vice Chairman Dileita spoke highly of China’s Africa policy and the Djibouti-China relations, and reaffirmed his country’s adherence to the one-China policy.

Wang arrived in Djibouti Tuesday, the last leg of his six-nation Africa tour. He has visited the Democratic Republic of Congo, the Central African Republic, Benin, Mali and Senegal. Source: (Xinhua)

African Chinese Entrepreneurs

The Common Market for Eastern and Southern Africa (COMESA) reports that it participated at the third Conference of African and Chinese Entrepreneurs in Sharm el Sheikh, Egypt from 7th to 8th November 2009.

The organization was represented by Assistant Secretary General (Programmes), Mr. Stephen Karangizi, who pointed out that there is increasing evidence that Regional Economic Communities on the continent are working more closely together to realize the dream of Africa which is to integrate Africa.

A good example of this was the launch of the COMESA-EAC-SADC Tripartite arrangement in October 2008, at which the 26 Heads of State of the three regional economic communities agreed to establish a Grand FTA stretching from Egypt and Libya to South Africa. In addition, the Heads of State also agreed on the eventual merger of the three institutions.

This augurs well for regional integration in Africa and for all potential investors as the removal of trade barriers of such a large region offers huge economies of scale. “We also believe that this new impetus opens the best way in which the building blocs recognized by the African Union, can rapidly contribute to the establishment of a larger African Economic Community”.

Mr. Karangizi added that through regional integration, Africa intends to create one large continental market of approximately one billion people that is competitive and offers all the productive and service sector economies of scale. Indeed the China example, which is the single largest integrated market in the world, offers the best lessons. The rapid growth of the economy of China over the past 20 years owes much to the large market of over 1.3 billion people.

In order to create a large continental market, the RECs have been concentrating on: removal of tariff barriers which has already been done by COMESA with the establishment of Free Trade Area stretching from Egypt and Libya in the north, to Swaziland and Mauritius in the south, reducing the range of non-tariff barriers, improving customs procedures and charges; and improving access to market information.

Mr. Karangizi said it is easier to invest in infrastructure projects on a regional basis in order to enhance intra-regional trade and address the uneven historical focus of having infrastructure designed to serve only the metropolis and export of raw materials.

However, RECs do recognize that there are several challenges to increase investment in infrastructure. One of the challenges is that most countries do not have the financial resources for investment in infrastructure projects, which require large capital outlays and are characterized by long gestation periods.

The traditional approach has been to obtain funding from multilateral development banks and development partners. This type of funding increases the debt stock and burden of countries. Hence, the need for public/private sector partnerships. It is gratifying to note that this is happening with respect to power and telecommunications projects.

Mr. Karangizi revealed that emphasis by Heads of State on regional integration is intentional so as to focus on five important factors, namely: Establishment of a large regional market to enhance competitiveness, Investment in infrastructure (energy, transport network, water and ICT), Investment in Productive and Services Sectors, Policy Harmonization and Regulation and Addressing Peace and Security Issues.

On expanding private/public partnerships, creative and innovative approaches are required for infrastructure financing such as the regional funds like the COMESA Infrastructure Fund, which has been established for pooling together resources to be leveraged for private sector investment in selected priority projects. In the near future, Member States of the Infrastructure Fund will be approaching selected private sector institutions that can participate in infrastructure investment in the region in partnership with the public sector.

Chinese Airline

Chinese carrier Hainan Airlines plans to launch a service to the capital of Sudan, a close political ally of China’s and a major oil producing nation, according to Air Transport Intelligence.

The Civil Aviation Administration of China says in a statement Hainan Airlines has applied for traffic rights to launch a thrice-weekly service from Beijing to Sudan’s capital Khartoum. The twice-weekly service starts 20 November and uses an Airbus A340, says an airline spokesman.

China is investing heavily in Sudan’s oil industry and has close ties to the government there. China’s foreign direct investment to Sudan was in 2005 worth over $300 million (Uncat).  The Washington Post reports that Trade between China and Africa jumped 45 percent, to $107 billion, in 2008, a tenfold increase since 2000, and that the new loans offered during the 4th China-Africa summit in Egypt are likely to sustain the expansion.

Economic development and financial ties also generate movement of people, goods and services between two points of gravity. Air transport correlates perfectly with trade activities and often fuels the pace of development between two trading regions.

The fact that a Chinese airline is opening air services to an African country shows that these trade relations must be quite advanced and a very serious matter to China. Hainan Airlines will have a monopoly on the connection Bejing to Khartoum as no other airlines operate on the route.