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.

An Eritrean government delegation headed by the Minister of Energy and Mines, Mr. Ahmed Haj Ali, participated in the 11th China Mining Conference that was held from October 21 to 22.

Mr. Ahmed Haj Ali presented paper at the conference highlighting the available mineral resources in Eritrea and investment prospects in the sector.

Meanwhile, the Minister of Energy and Minies and the Chinese Minister of Land and Natural Resources, Mr. Shu Shiwoshi, concluded agreement on fostering cooperation between the two ministries.

The Chinese Minister asserted that cooperation with the Eritrean Ministry of Mines and Energy would be enhanced in accordance with the agreement.

Moreover, the Eritrean delegation conducted extensive discussion with the Chinese Geological Survey (CGS) and the Northern Chinese Geological Survey (NCGEB) on ways of working jointly.

Over 3,500 persons, including ministers and Ambassadors from African, Asian and Latin American countries took part in the conference . Source: (Shabait)

Asmara, In continuation of the existing cooperation of partnership between the governments of Eritrea and the PRC in various spheres for mutual benefit, the ministries of agriculture of the two countries today concluded an agreement on fostering cooperation in the domain of agriculture.

The agreement focusing on fostering cooperation in research and extension activities involves the introduction of select seeds, development of cotton, maize, fruits and vegetables production, in addition to boosting agricultural output and their processing, improvement of seeds, introduction of modern irrigation farming, repair of heavy agricultural machineries, human resource development, among others.

The agreement is also aimed at creating conducive ground for Chinese investors to invest in the agriculture sector in accordance with the Eritrean law, besides incorporating other major development programs.

The agreement was signed by the Minister of Agriculture, Mr. Arefaine Berhe, on the Eritrean side, and the Chinese Ambassador to Eritrea, Mr. Li Liansheng, on the side of the PRC.

Speaking at the signing ceremony at the Agriculture Ministry’s Hall here in Asmara, Mr. Arefaine lauded the PRC for enhancing cooperation with the Eritrean Agriculture Ministry in various fields. He further explained that a number of Chinese agricultural experts are already visiting Eritrea to make due contribution for the realization of the envisaged development programs.

Ambassador Li Liansheng on his part cited that the agriculture sector is one of the priorities of the Eritrean government and expressed conviction that the cooperation of partnership would continue. Source: (Shabait)

China in Africa

DALIAN, China, Sept 11 – Standard Bank (SBKJ.J: Quote), Africa’s top bank by assets, said on Friday it had obtained a $1 billion loan facility from four Chinese banks, drawing on its equity tie-up with China’s biggest bank to push into Asia.

China has been pouring money into resource-rich Africa, welcomed by some, but drawing criticism from Western aid groups, who say the country is turning a blind eye to misrule and corruption.

China argues it is spreading prosperity in the world’s poorest continent where the West has failed.

One of the four Chinese banks behind the facility is Industrial and Commercial Bank of China (ICBC) (1398.HK: Quote) (601398.SS: Quote), which owns 20 percent of Standard Bank and is the world’s biggest bank by market value, Standard Bank said in a statement.

The other three banks are Bank of China (3988.HK: Quote) (601988.SS: Quote) China Development Bank and China CITIC Bank (601998.SS: Quote) (0998.HK: Quote), according to the statement.

“This deal will serve as a platform for future cooperation between Standard Bank and these banks across a range of different banking products and geographies to support Chinese companies going global into emerging markets,” said Standard Bank Chief Executive Jacko Maree in the statement.

CHINA PARTNERS

Standard Bank and ICBC aim to jointly support Chinese companies going out into emerging markets especially into Africa, Maree said.

The facility between Standard Bank and its Chinese partners is a five-year fund-raising deal, repayable in a bullet capital single tranche at maturity, and the facility is a “debut term loan for Standard Bank’s fund raising in the Asian market”, the bank said in the statement.

Standard Bank expects to seal a dozen major lending deals in Africa with its China partner next year, as resource-hungry Chinese firms begin returning to the continent, Reuters reported earlier this week. [ID:nHKG127767]

Standard Bank has said that Chinese companies are looking for opportunities in Africa with focuses on mining, oil and gas and mineral sectors, where the African bank expects to see fast-growing and huge demand for financing in these resources and infrastructure-related sectors. Source: (Reuters)

afrochina

China’s economic expansion abroad can give rise to resentment in the countries it targets — risks that are likely to increase as China channels more foreign exchange reserves in overseas investments.

Africa has received billions of dollars in Chinese investment, and China last year overtook the United States as the continent’s biggest trading partner.

Here are some experiences of Chinese investment in Africa:

SUDAN

China’s commercial ambitions have pushed its workers into some of the most hazardous corners of Sudan, where they have had to face political as well as cultural hostility.

Sudan’s rebel Justice and Equality Movement (JEM) has repeatedly ordered Chinese companies to leave the oil-producing region of Southern Kordofan and in 2007 attacked two oilfields there run by China’s CNPC, kidnapping workers. The insurgents’ main grudge is against Beijing, which it accuses of arming and supporting Khartoum in the conflict-torn Darfur region. But they also have problems with staff on the ground.

“The real problem we have with them is accountability,” said JEM spokesman Al-Tahir al-Feki. “If something goes wrong between the locals and the Chinese, there is nowhere for the locals to go … We have established relations with the West. But we have nothing with the Chinese,” he said.

ZAMBIA

This country of 12 million people has become one of Beijing’s largest economic partners in Africa. Chinese President Hu Jintao visited Zambia in 2007 and pledged $900 million in investments in mining, while China’s Zhonghui Mining Group said last month it will invest $3.6 billion in Zambian projects over the next five years.

But opposition politicians have tapped into anti-Chinese sentiment, fed by clashes between workers and management at Chinese-run enterprises in Zambia. Michael Sata, leader of the opposition Patriotic Front, has won popularity with his anti-Chinese stance.

In a reflection of anger at the government’s close relationship with Beijing, its candidates have lost the last three parliamentary and presidential election in Zambia’s Copperbelt Province.

MAURITANIA

Chinese firms are heavily involved in infrastructure projects. They have built an industrial port in the capital, Nouakchott, and a sports stadium. Chinese firms are also involved in construction of a pipeline to supply clean water to the city.

“The Chinese have an incredible capacity for work,” an engineer on the pipeline project told Reuters, on condition of anonymity as not authorised to speak to the media. “They work seven days a week, they never fail to show up and respect their contracts rigorously.”

DEMOCRATIC REPUBLIC OF CONGO

A $9 billion minerals-for-infrastructure deal between Congo and China is presented by Congolese President Joseph Kabila as a cornerstone of his plan to rebuild after years of war. Chinese companies are to rebuild thousands of kilometres of road and rail connections and build schools and hospitals.

In exchange, they will be granted mining rights to concessions estimated to contain millions of tonnes of copper and cobalt reserves.

The deal requires the Chinese to hire Congolese manual labour in an effort to create jobs in a country plagued by rampant unemployment.

But many Congolese remain sceptical. “It’s a good thing. They said they’d build motorways and everything,” said Michel Nzuzi, a street vendor in the capital, Kinshasa. “But they don’t pay enough (to local workers). Even the kids shining shoes in the street earn more than those guys.”

CONGO REPUBLIC

In the neighbouring Congo Republic, Chinese firms are also heavily involved in infrastructure projects. President Denis Sassou-Nguesso rejects allegations that Chinese workers take jobs away from local people.

“Contrary to certain assertions, it’s not just Chinese on the various construction sites, there are also numerous Congolese workers,” he said. Ordinary people said they also welcome the presence of Chinese traders, who run shops in the two main cities of Barazzaville and Pointe-Noire selling clothes, electrical appliances and toys.

“Because of competition from the Chinese who sell at low prices, the other foreign traders, especially the West Africans, have cut their prices,” said Pierre Koumba, a 42-year-old bricklayer.

ALGERIA

Chinese diplomats say there are around 30,000 Chinese people working in Algeria. Most are involved in massive infrastructure and housing projects the government is funding using revenues from oil and gas exports.

Executives in Algeria’s construction sector say they need Chinese workers because, even though 7 out of 10 Algerians under 30 years of age are unemployed, they cannot find enough qualified manpower. Many Algerians view Chinese workers with a mixture of resentment and awe at their capacity for work.

Tensions spilled over this month in a suburb of the capital, when about 100 local residents and Chinese migrants fought a mass brawl using knives and bludgeons. Nacer Jabi, who teaches sociology at Algiers University, said cultural differences played a part.

“Mixing with others, understanding other people, that won’t happen overnight,” he said. “The Chinese should do more to let Algerians know about their rich culture.” (Compiled by Christian Lowe in Algiers, Reporting by Andrew Heavens in Khartoum; Shapi Shacinda in Johannesburg; Joe Bavier in Kinshasa; Christian Tsoumou in Brazzaville; Vincent Fertey in Nouakchott and Lamine Chikhi in Algiers) Source: (Reuters)

Chinese News Agency Xinhua reports that Chinese Ambassador to Eritrea Shu Zhan is expecting trade and cultural relations with Eritrea to be strengthened further. Shu points out that China has already aided a hospital, two schools and one  human and social science institute to Eritrea and that trade volumes of China with Eritrea have reached $31 Million in 2008, which was a 7.6% increase compared to 2007.

The statements of the Ambassador follow previous steps taken by China and African countries to improve bilateral trade relations. For example, in August 2008 the China Development Bank signed a credit agreement worth $50 Million with PTA Bank, which stands for Eastern and Southern African Development Bank. The shareholders of the PTA Bank  are Eritrea, Burundi, Comoros, Rwanda, Seychelles, Somalia, Ethiopia, Egypt, Djibouti, Kenya, Tanzania, Seychelles,  Somalia, Sudan, Uganda, Zambia, Zimbabwe. The credit was supposed to support industrial sectors, which require heavy investment such as mining, telecommunication and infrastructure and was a result of the Bejing Summit  of the Forum on China-Africa Cooperation in 2006. China is also involved in the gold mining projects in Eritrea with companies such as Donia Resources & Co (capitaleritrea).

The Xinhua News Agency reported that a delegation of the ruling communist party of china, also known as CPC left to an official visit to Eritrea, Kenya, Ghana, Cape Verde and Norway. The delegation left Bejing on Saturday 2. May to discuss bilateral relations with the five countries.

Paris, France: Due to the fact that China is becoming more aggressively dominant as a big player in nearly every business sector of the continent, rifts with other non-African nations doing business in Africa occur more frequently. (Article: China, Driver of African Busines by capitaleritrea).

The latest trade battle is fought by China against the Netherlands. Both Nations compete for the African Textile Industry, with the Netherlands owning the “Grand Fathers Rights” as an old and long established trade nation of textile in Africa.  The Dutch side claims that China and its “workerholics” are flooding the African market with cheap, low quality copies of designer brands and textile articles. The industrial nations have increased interests in Africa as the continent is promissing substantianl economical growth in the coming years. How this will impact Africa itself relys on how the African are gowing to deal with it and how the Afrcans can minimise the risk of being exploited by hungry nations outside Africa. read more: