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)

ASMARA, May 7 (Xinhua) — Eritrean President Isaias Afwerki on Thursday underscored that stability is the most important factor to promote economic and social development in the African country. Isaias made the remarks in an exclusive interview with Xinhua ahead of the upcoming 16th anniversary of the founding of the State of Eritrea.

“Many may underestimate the importance of stability, but talking about achievements, you have to talk about the preconditions for achievements, and we believe stability is a basic requirement. Without stability, it is very difficult to talk about achievements in the economy, achievements in social programs and other sectors,” the Eritrean president noted.

He added that his country has been able to consolidate the stability based on the long political tradition in Eritrea, in spited of the regional and international challenges.

Isaias also mentioned the achievements in the infrastructure in the past years since independence as his government has adopted a strategy to guarantee the development of infrastructure in the sectors of mining, agriculture, tourism and industry among others.

Eritrea is “in the right track of putting in place a viable infrastructure that will create a conducing framework for investment and then development”, taking consideration of the timespan and the limitation of resources, he noted.

Isaias also explained that his country started from nothing in the field of social service, including healthcare and education, while such service is currently being provided to the Eritrea people in the above fields.

On the recent development of the bilateral ties with China, the Eritrean president said that the strategic partnership between the two countries has developed at a high speed, which was successful in many fields, as the relation between the two countries went beyond the establishment of diplomatic ties on the exact day of Eritrea’s independence.

He expressed the intention of his country to expand cooperation with China in critical economic sectors with priorities on mining, infrastructure and agriculture, as well as service.

On the implementation of the eight major moves China would take to develop relations with Africa, which was announced at the Beijing Summit of the Forum on China-Africa Cooperation in 2006, Isaias said the Forum boost the strategic partnership between China and Africa to a higher level.

The president said that many countries in the Africa see the fruits and achievements, with the understanding that China will bring changes to Africa, promote the economic development in the continent.

He also expected China and Africa to grasp the opportunity during the current global economic crisis to strengthen the bilateral cooperation, as African countries appreciate the investment style of “mutual benefit and common development” initiated by China in Africa as a “two-way cooperation.”

African countries should boost coordination to adopt realistic polices to meet the challenges facing the continent and the Sino-African cooperation and benefit from the Chinese investment and the strategic partnership, Isaias noted, calling for more efforts to develop Africa as a viable market.

The Eritrean president also praised the successful handling of the serious earthquake in Wenchuan in China’s southwest province of Sichuan in May 2008, which made China more prepared to deal with natural disasters in the future.

On the upcoming 60th founding anniversary of the People’s Republic of China in October, Isaias sent congratulations to the Chinese people as China has developed into a major world economic power in the past years and made contributions to world peace and prosperity.

“We, not only here in Eritrea, but along the continent in everywhere, would wish the Chinese people to continue along the same path so that we see more of positive change and cooperation between China and other peoples, ” he concluded.

Eritrea, which currently has a population of about 5 million, formally announced its independence from Ethiopia in 1993.

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: