Emerging Powers in Africa News Round-up

In this week's roundup of merging powers news, the new Silk Road built by China connects Asia to Latin America, more SA businesses want a piece of BRIC, Ecobank Ghana signs pact with Bank Of China, and Durban to host Africa diaspora conference.

General
New Silk Road Built by China Connects Asia to Latin America
The high-speed rail link China Railway Construction Corp. is building in Saudi Arabia doesn’t just connect the holy cities of Mecca and Medina. It shows how Asia, the Middle East, Africa and Latin America are holding the world economy together.
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World Bank Probe of Eskom's Loan
The World Bank has started an investigation into its $3,75bn loan to Eskom after a complaint by two local environmental groups on behalf of the Lephalale community, where the Medupi power station is to be built.
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US asks India, China, Brazil to open farm markets
The United State is pushing emerging markets like India, China and Brazil to open up their agriculture markets for a successful Doha round of World trade talks. The US was 'taking the lead in pursuing new trade opportunities, with a special focus on the world's fastest-growing markets,' US trade representative (USTR) Ron Kirk told the Senate Committee on Agriculture Wednesday. 'In the Asia-Pacific, USTR is leading negotiations of a new, high- standard, 21st century Trans-Pacific Partnership (TPP) Agreement that will ensure American farmers and ranchers access to the region's dynamic and growing markets for decades to come,' he said.
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More SA businesses want a piece of BRIC
South African big businesses are positioning themselves to take advantage of the growth in the BRIC [Brazil, Russia, India and China"> bloc through intensifying efforts to get partnerships and investment opportunities in those countries. Yet another high level business delegation, which includes Standard Bank Group chief executive Jacko Maree, Industrial Development Corporation CEO Geoffrey Qhena, BHP Billiton chair Xolani Mkhwanazi and Eskom chair Mpho Makwana among others, is accompanying President Jacob Zuma on his two-day bilateral official visit to Russia.
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Ma to visit Africa next year: official
A ranking official at the Presidential Office said on condition of anonymity that Ma would visit the country’s African allies at the beginning of next year and preparatory work would begin as early as November. If things go smoothly, Ma will visit all four allies on the continent, the official added. Taiwan’s four African allies are Burkina Faso, Sao Tome and Principe, Swaziland and Gambia.
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China in Africa
Ethiopians to hold protest rally against China’s policy on Ethiopia
A coalition of several Ethiopian groups are coming together to organizing a protest rally against China’s political, financial and technical assistance to the genocidal regime in Ethiopia. The first protest rally will be held in Washington DC on August 5, 2010 at the Embassy of China.
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SA signs police agreement with China
As part of efforts to strengthen bilateral relations between South Africa and China, Police Deputy Minister Fikile Mbalula on Friday signed a police co-operation agreement with his Chinese counterpart, Chen Zhimin. In a statement the ministries outlined various ways of consolidating and exchanging intelligence information on drug trafficking, illegal immigration, money laundering, arms smuggling and trafficking of women and children.
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Wesizwe's China Deal Stuck on BEE
WESIZWE Platinum CEO Mike Solomon will step down as the company negotiates with a Chinese consortium on a R6,6bn deal that may be delayed because of its empowerment stake.
Wesizwe has to address its empowerment level to win government approval for the transaction, which will give the Chinese consortium a 51% stake in Wesizwe, dilute existing shareholdings and provide full funding for development of a R6bn platinum mine.
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Zuma to charm China
South Africa will push for expansion of both trade and direct investment when President Jacob Zuma visits China later this month in one of the legs of a worldwide tour to expand ties with the world's biggest economies.
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Dti to lead business delegation to China
Trade and Industry Deputy Minister Maria Ntuli is to lead a 35-member business delegation to the World Expo 2010 in China. The six-day expo, which kicks off on Saturday, is themed "Better City, Better Life", highlighting the concern of the international community for future policy making and sustainable development.The South African delegation will consist of business people in defence, security, arts and crafts, textile sectors and officials from three provincial economic development agencies.
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Ecobank Signs Pact With Bank Of China
Ecobank Ghana, on Friday, signed a partnership agreement with the Bank of China (BOC), to facilitate international trade, projects, and investments between Africa and Asia.With the agreement, Ecobank Ghana becomes the first affiliate of the Ecobank Group to have a dedicated desk of the Bank of China.
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China, Africa promote agricultural co-op through party-to-party channels
Senior officials from Chinese and African political parties will gather in Beijing next week to discuss ways to promote agricultural cooperation. The International Department of the Central Committee of the Communist Party of China (IDCPC) made the announcement Tuesday at a press conference.
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China’s centre for agricultural research in Mozambique ready in October
China’s Centre for Agricultural Research and Technology Transfer in Mozambique, located in the district of Boane, Maputo province is expected to be finished in October, the Mozambican minister for Science and Technology, Venâncio Massingue, said in Maputo Thursday.
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Opportunities for African Firms in China
At a business event held in Sandton, South Africa, on July 26, 2010 by the Global Business Roundtable, Tianjin, one of China’s key municipalities under the Central Government, showcased its huge infrastructure investments over the past few years, positioning the area to be a leading economic hub. They were seeking African investors into its economy, as well as opportunities for business people from the Tianjin to invest in Africa.
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Kumba shrugs off China's ore import restrictions
The China Iron & Steel Association announced new rules yesterday restricting the number of licensed iron ore importers, a move intended to reduce smaller traders blamed for inflating prices. China consumes about half the world's output of iron ore, used as a steel-making ingredient. Its domestic iron ore production has risen as imports drop off.
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Cocaine: NDLEA won’t extradite arrested Chinese, says Giade
The National Drug Law Enforcement Agency, NDLEA, yesterday ruled out the possibility of extraditing the Chinese nationals arrested in connection with the recent seizure of 450.400kg of cocaine valued at N4 billion. NDLEA Chairman, Alhaji Ahmadu Giade, who disclosed this in Lagos, said the two Chinese nationals, Richard Wang and Chiusen Fong, would be tried in the country as soon as investigations into the matter was concluded.
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Opportunity China's pharmaceutical enterprises in Africa: the market attractive policy concessions – medicine, Africa – the pharmaceutical
It is because of the huge African market in the pharmaceutical supply capacity needs and their own poor, in recent years, Africa has become China’s pharmaceutical enterprises “going out” one of the first choice.
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China's Investments in Southern Africa Shifting from Mining to High-tech
Dorcus Makgato-Malesu, Minister of Trade and Industry of the Republic of Botswana, said on July 26th that China's investments in southern Africa are shifting from infrastructure, mineral resources such as copper and nickel to high-tech fields such as information.
The Minister said on the China-Botswana Business Promotion Seminar that most southern African countries boast abundant mineral resources, including Botswana. Her country will take an active part in talking with Chinese enterprises about cooperation in mining, manufacturing (including glass processing and diamond processing), agro-products processing etc.
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Chalco, Rio Tinto formalise Guinea iron ore venture
Aluminum Corp of China Ltd (Chalco) has agreed to invest $1.35 billion in a Guinea joint venture that partner Rio Tinto claims is the world's largest undeveloped iron ore deposit.
The agreement to develop the Simandou project follows a non-binding deal signed in March by Chalco's parent, Chinalco, and is the Chinese group's first non-aluminium investment overseas.
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India in Africa
India's Export-Import Bank Lends Congo $42 Million to Build Bandundu Dam
India’s Export-Import Bank lent Democratic Republic of Congo $42 million to build a dam in west- central Bandundu province. The Kakobola dam will provide power for almost 2 million people around the city of Kikwit, the office of Congo’s Prime Minister Adolphe Muzito said in an e-mailed statement.
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Are the Guptas the new Shaiks?
President Jacob Zuma seems to have replaced the well-known Shaik brothers as his close allies with another influential and wealthy family: the Guptas from India
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Indian demand fuels African cashew trade
West Africa is developing into an increasingly significant producer and processor of cashew nuts, feeding into lucrative markets in India. The cashew nut rarely figures high on most investors’ lists of West Africa’s principal exports. The nut is more closely associated with India, where it is processed and exported worldwide or ground into shahi korma sauces. However, India has built up such a significant cashew industry that in order to satisfy increasing demand, it now imports as much of the nut as it grows.
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India to assist Seychelles in anti-piracy operations
In an effort to increase its presence in the Indian Ocean, India has agreed to and provide aircraft to Seychelles and bolster its security forces. Responding to the request during an interaction with the leadership of Seychelles, Defence Minister A.K. Antony agreed to extend help to carry out maritime and Exclusive Economic Zone surveillance operations.
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Durban to host Africa diaspora conference
Come October and the Indian diaspora in Africa will converge for the Mini Pravasi Bharatiya Divas (PBD) in Durban, marking the city's historic links with India and aiming to 'build bridges' between them and their country of origin. The event, titled 'PBD-Africa', is to be held in the South African city Oct 1-2 on the occasion of Gandhi Jayanti, the birth anniversary of Mahatma Gandhi. The year also marks the 150th anniversary of the arrival of the first indentured sugarcane labourers from India whose descendants have today risen to become flourishing entrepreneurs.
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Indians seek 'safety net'
South Africans who spoke to the Sunday Times Extra said they had applied for Overseas Citizenship of India (OCI) and People of Indian Origin (PIO) cards as a "back-up plan if things worsen in the country". PIO and OCI cards were made accessible to South Africans of Indian origin by the government of India in 2002 and 2006, respectively. Both cards allow holders to buy property, do business, visit and live in the country without a visa while giving the card holder the rights of an Indian citizen, with the exception of the right to vote.
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In Other Emerging Powers News
Zambia miners campaign against $400 million copper investment by Vale
Zambia's largest mine workers' union said on Wednesday it aimed to block Brazilian firm Vale's planned development of a $400 million copper mine because of concerns about its bad labour relations record. Mine Workers' Union of Zambia (MUZ) President Rayford Mbulu said Vale, which plans to develop the Konkola North copper project, had been involved in a standoff with steel workers in Canada for almost a year and should not be allowed in Zambia. Mbulu said the 20 million-member International Chemical, Energy, Mining and General Workers' Union (ICEM) resolved to oppose Vale's investments worldwide until the company proved that it would respect workers' rights.
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Russia inks new uranium deal with South Africa
Russia agreed on Friday to supply more low-enriched uranium to South Africa's only nuclear power station, a contract that will give Russia's uranium trader nearly half of Africa's biggest market for enrichment services. The deal, which extends an earlier agreement from the 1990s, was signed after Kremlin talks between South African President Jacob Zuma and his Russian counterpart Dmitry Medvedev. Under the deal Russia's state uranium trader Techsnabexport will supply uranium enrichment services to companies such as Westinghouse Electric, owned by Japan's Toshiba Corp, for delivery to the Koeberg nuclear power plant.
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SA, Russia sign trade protocol
International Relations Minister Maite Nkoana-Mashabane has signed a trade deal with her Russian counterpart, her department said on Tuesday. "The ministers reaffirmed their determination to intensify and deepen mutually beneficial bilateral social, economic and technical co-operation," it said in a statement.
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Russia ready to discuss South Africa joining BRIC – Medvedev
Russian President Dmitry Medvedev indicated on Thursday Moscow's readiness to discuss bringing South Africa into BRIC, the informal grouping of Brazil, Russia, India and China.
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S.Africa's Zuma steps up BRICs charm offensive
South African President Jacob Zuma goes to Russia and China this month, part of a push to open new trade and investment routes to the fast-growing emerging economies to replace traditional markets in Europe.The trips come on the heels of a state visit to South Africa by Brazilian President Luis Inazio Lula da Silva during last month's soccer World Cup that underscored the importance emerging countries are placing on boosting mutual trade.They also mean Zuma will have visited all four of the BRICs countries -- Brazil, Russia, India and China -- in a little over a year after taking office.
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There's a New Silk Road, and It Doesn't Lead to the U.S.
As the U.S. emerges from the recession, American investors often wonder where the growth is going to come from. Perhaps they should talk to Ruben Bisi, international operations director for Marcopolo, Brazil's biggest bus maker. It's having a banner year, with revenue up 47 percent so far. You won't see Marcopolo buses in the U.S., though. They're cruising the highways and city streets of Argentina, Colombia, Mexico, Egypt, India, China, and South Africa.
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Adani to put $30 bn in coal, power, shipping
The Adani Group, after acquiring Australian firm Linc Energy Ltd’s Galilee coal tenement, plans to invest $25-30 billion (Rs1.2-1.4 trillion) in its businesses over the next seven years, said chairman Gautam Adani. These investments will be made in a slew of projects involving coal mine acquisitions, cement manufacturing, shipping, port construction, overseas farming and power generation among others.
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Cementing Vietnam-Africa ties of friendship and solidarity
In recent years, the Communist Party of Vietnam has gradually made Vietnam’s relationship with African countries an important part of its foreign policy. So far, Vietnam has established diplomatic relations with 51 out of 54 African countries. The country is also promoting the establishment of diplomatic ties with the remaining three African countries – Comoros, Malawi, and Liberia.
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The rising power of the Chinese worker
CHEAP labour has built China’s economic miracle. Its manufacturing workers toil for a small fraction of the cost of their American or German competitors. At the bottom of the heap, a “floating population” of about 130m migrants work in China’s boomtowns, taking home 1,348 yuan a month on average last year. That is a mere $197, little more than one-twentieth of the average monthly wage in America. But it is 17% more than the year before.
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Not entirely free, your honour
The legal profession, like the clients it serves, is well on the way to going global—but especially in India, obstacles to its spread remain.
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Blogs, Opinions, Presentations and Publications

Home is SA
It's complicated being a South African Indian visiting India. You return as a tourist 150 years after your ancestors left as glorified slaves; with home never far from your thoughts. South Africa, five generations later, is unequivocally home.
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The Pros and Cons of Mining in West Africa
Western Africa seems like the place to be for large mining and steel businesses, such as: Vale, Rio Tinto, BHP Billiton, ArcelorMittal, Aluminum Corp of China or Chinalco, Severstal. These six companies plan to spend billions of dollars in Guinea, Liberia and Sierra Leone – where some of the world’s richest deposits of iron ore and bauxite have been found.Yet despite the promises of profits the area holds, those companies need to tread carefully. Because they could strike it rich… or step on much more dangerous mines while they search.
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Nothing is for Nothing - Influence and China's Rising Quick-Impact Infrastructure
China's ambassador here, Zhou Yuxiao, in begging another multi-million dollar project- the construction of the country's Health Ministry--has made it clear that his country has no vested interest in Liberia. From Cold War perspectives, when China and other powers sought ideological partners across Africa and Asia, that could be true. But his declaration is an understatement. China has embarked upon expanding its influence, cultural and economic, and there is nothing wrong with that on today's global political landscape, indicating that there is nothing for nothing.
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Chinese entrepreneurs in Africa, land of a billion customers
Multi-billion dollar resource and infrastructure deals between China and African countries make the business headlines ever more regularly, but there are very few reports on the growing numbers of Chinese entrepreneurs and small private companies seeking opportunities in Africa that they cannot find in China. Tessa Thorniley looks at how they are faring.
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Brics in Africa: adding it up
It’s become a hoary cliché that the Bric economies are leading a modern day “scramble for Africa” - and it’s a scramble that’s often frustratingly difficult to quantify. But Standard Bank has waded through the mish-mash of data and emerged with a prediction: that over the next decade emerging economies will contribute 30 per cent of the new foreign investment coming into Africa. While the bulk of African FDI is still from the old economies, the momentum is all with the Brics.
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BROUGHT TO YOU BY PAMBAZUKA NEWS

* Compiled by Hayley Herman, programme officer based with the Emerging Powers in Africa programme.

* Please send comments to editor@pambazuka.org or comment online at Pambazuka News.