Latest Edition: Emerging Powers News Round-Up

1. General

US wakes up to Chinese expansion in Africa
Last week, the chairman of the US-based Export-Import Bank, Fred Hochberg, was the latest US official to visit SA to identify infrastructure projects that would benefit from US investment. Last year, the bank invested about $800m in 41 sub-Saharan African countries, Mr Hochberg says. Last month, William Fitzgerald , the US deputy assistant secretary of state for African affairs, was also in SA to brief US economic and commercial diplomats posted in Africa on White House plans to engage with the continent. Mr Fitzgerald concedes that China’s role as the preferred trade and investment partner for most African countries can no longer be ignored.
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Africa’s New Trade Frontier
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What’s the African Consensus for development?
United States President Barack Obama’s November 6 visit to India has brought into the forefront the long-running issue of what development philosophy is appropriate for each developing region, especially Africa where there hasn’t been any clear-cut development philosophy. Ahead of Obama, Larry Summers, Obama’s economic policy point-man, in New Delhi, India touted China’s and India’s development successes, grappled with whether China’s Beijing Consensus or India’s Mumbai Consensus was better for the rest of the developing world. With Brazil’s success over the years that has seen millions of Brazilians moved out of poverty and built an economy in which the middle class is the majority, we can safely say there is Sao Paulo Consensus in South America. That makes the African region as the only place without a notable developmental Consensus distilled from within itself.
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2. China in Africa

China's Africa resource hunt needs transparency
Chinese companies eying African mineral resources must be transparent in their investments, or risk a backlash from closed-door deals, a senior World Bank executive said on Tuesday. Ngozi Okonjo-Iweala, the World Bank's managing director, told Reuters on the sidelines of one of China's biggest mining conferences that investors in Africa needed to work more with local communities in order to avoid conflicts and eventually even reduce costs. "China's investment is welcome -- Africa has an investment deficit and there is room for everyone, but investment needs to have sound principles whether it is from China, Europe or the United States," she said.
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UNDP, China to boost their partnership on Africa
UNDP will be strengthening its cooperation with China to boost poverty reduction efforts on the African continent. Coming to a close on 2 November, the Africa-China Poverty Reduction and Development Conference has led to the signature of two letters of agreement which will bolster the African focus of the International Poverty Reduction Center in China (IPRCC) and promote technical cooperation in the area of agriculture.
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Zambia: US$1.5 billion hydro power station underway
Construction works of a new hydro power station at Kafue gorge lower are set to commence next year by June following the completion of a feasibility study, Energy minister Kenneth Konga has said. Speaking when he toured the construction site of the new power station, Mr Konga said the new hydro power station would be done at a cost of US$1.5 billion.
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China Development Bank issues first Africa loan to Egypt
The China Development Bank has issued the first in a series of loans China is offering to support small and medium sized African development enterprises. The bank explained in a statement published on Friday on its website that the loan worth US$200,000 was granted to the company Wonder Lighting Egypt.
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China Development Bank seeks to offer better financial service to Africa
China Development Bank (CDB), in light of China's national strategy of cooperation with Africa, has make great efforts to innovate in its financial services to better help African countries, CDB President Chen Yuan said before his visit to South Africa. Chinese Vice-president Xi Jinping just wrapped up his tour to Singapore, and will visit South Africa, Angola and Botswana on Nov. 16-24. Chen, who is accompanying Xi during the visit, told reporters that until the end of September the CDB has offered more than 10 billion U.S. dollars of intended financing to Africa and a total of 5.6 billion dollars of financing support to 35 programs in over 30 African countries.
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China's Xi in S.Africa for minerals, investment
Chinese Vice President Xi Jinping began a trip to mineral-rich South Africa on Tuesday aimed at securing resources for the Asian economic power, looking to extend its influence in the African continent. Beijing sees global mining power and regional financial services leader South Africa as a vital source of commodities to fuel its rapidly expanding economy and industries and as a stepping stone to access other African states.
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S.Africa signs $435 mln solar deal with Yingli
South Africa has signed a deal with Chinese company Yingli Solar to build a $435 million manufacturing plant with a local partner, a senior government official said on Wednesday.
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China's Datong Group eyes coal mines in S.Africa
Datong Coal Mine Group, China's third-largest state-owned producer, is seeking coal mines overseas and plans to invest "tens of billions" of yuan in the new energy sector as part of its five-year development plan, its chief said on Tuesday. Datong, parent of the Shanghai-lised Datong Coal Industry Company Ltd, wants to branch out into clean energy production, such as solar cells, polysilicon and batteries, as part of larger plans to tap into the country's growing demand, said Wu Yongping, president of Datong.
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Africa infrastructure next big move for China firms
The construction of transportation and power infrastructure across Africa could provide the next big opportunity for Chinese firms aiming to invest in the continent, a senior executive with South Africa's Standard Bank told Reuters. Speaking on the sidelines of a mining conference, Andrew King, the bank's Asia chief executive, said the big advantage Chinese developers have over their Western counterparts is the Chinese firms' access to financing from government policy banks.
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More China trade with Portuguese-speaking states: Wen
China will launch a US$1 billion fund to boost cooperation between China and Portuguese-speaking countries and hopes to boost trade with these nations to US$100 billion by 2013, Premier Wen Jiabao said on Saturday. Mr Wen said China trade with Portuguese-speaking states, including Portugal and Brazil, surged 57 per cent from a year ago to reach US$68.2 billion in the first three quarters of this year. Chinese financial institutions will also provide 1.6 billion yuan (US$241 million) of discounted loans to Portuguese-speaking countries in Asia and Africa, Wen said at a forum for economic and trade cooperation between China and Portuguese-speaking nations in Macau.
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Attack on Chinese Workers in Angola Kills Two Guards in Cabinda
Two soldiers protecting Chinese workers in Angola’s oil-rich Cabinda province were killed by the same separatist group that shot dead members of Togo’s national soccer team in January, according to China’s consulate.
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Ghana, China to hold investment exhibition
THE Hubei Sub-Council of the China Council for the Promotion of International Trade (CCPIT) is organising a four-day trade and investment exhibition aimed at creating a platform for' companies from the Hubei Province of China to explore areas of collaboration with their Ghanaian counterparts at the Ghana Trade Fair Centre, Accra from December 2 to 5, 2010.
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3. India in Africa

S.Africa's Zuma lauds 150th anniversary of Indians' arrival
South African President Jacob Zuma invoked Mahatma Gandhi and his philosophy of passive resistance Monday in an address celebrating the 150th anniversary of South Africa's Indian community. Speaking the day before the anniversary, which marks 150 years from the day the first indentured Indian workers arrived by boat in Durban, Zuma said the Indian community had played a "vital role" in South Africa's history.
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Kenya PM roots for Africa-India ties
Prime Minister Raila Odinga has said that there is need for Africa and India to network in doing business. The PM noted that the two countries could form the INDO - AFRICAN GROUP to facilitate economic growth as they historically share a common heritage that could be enhanced for trade and Industrial Development.
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India-Africa partnership to mark 21st century global economy
The prime minister of Kenya and the minister of commerce and industry of India agreed that their countries are embarking on a new era of South-South cooperation that promises to become a hallmark of the global economy. “The India-Africa partnership is going to be a defining one in this century because of the resources, both natural and human,” said Anand Sharma, Minister of Commerce and Industry of India. Speaking along with Sharma on a panel entitled “The New South: Developing the Africa-India Partnership” at the World Economic Forum’s Indian Economic Summit, Raila Amolo Odinga, Prime Minister of Kenya, said that “we see Africa’s relationship with Brazil, India and China as strategic. They are important in the quest for socio-economic development of our continent.”
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Indo- South Africa Bilateral Trade has Potential to Touch US$ 10 Billion
India and South Africa, with a rich history of cultural similarities need to strengthen the economic linkages through a strong business and Governmental cooperation said Hon’ble Mr. Loganathan Naidoo, Deputy Mayor of Ethekweni, (Durban) South Africa while addressing a Seminar on “Indo-South Africa Investment and Trade” jointly organised by the Confederation of Indian Industry (CII) and ANC Progressive Business Forum, South Africa in Chennai today.
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KQ to double flights to India
National carrier, Kenya Airways, will soon double its flights to India following the acceptance of a request presented by Prime Minister Raila Odinga to his Indian counterpart Mr Manmohan Singh.
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Indian ICT link boon for Kenya
Kenya’s technology sector will benefit from trade in-flows amounting to $70 billion as it deepens links with India. Developments at the World Economic Forum held in New Delhi recently could see science and technology transfers and the creation of value-added products from raw materials, as well as infrastructure development, prioritised as the two countries move to cement their trade relations. “We see Africa’s relationship with Brazil, India and China as strategic. They are important in the quest for socio-economic development of our continent,” said Kenya’s Prime Minister Raila Odinga.
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To finalise $1 bn deal for overseas assets soon: Oil India
Oil IndiaState-run Oil India today said it hopes to seal an estimated $1 billion deal for acquisition of producing oil assets in Australia, South America and Africa in the near future. "Definitely some opportunities are being evaluated and we are hopeful that something should click very soon," Oil India Director (Finance) T K Ananth Kumar told reporters here on the sidelines of an Assocham conference.
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The India Economic Summit - New Delhi, India 14-16 November 2010
Implementing India
This year’s India Economic Summit pays particular attention to how inclusive social and economic progress can be delivered and serve as a model for other developing economies. India’s imperatives include building critical infrastructure, expanding skills development, addressing security threats and achieving income and gender equality.
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4. In Other Emerging Powers News

Mozambican government to intervene if Brazil’s Vale and India’s RITES unable to reach agreement
The Mozambican government will intervene if negotiations between Brazilian mining company Vale and India’s RITES for use of the Sena railroad, the Minister for Transport and Communications said in Maputo. According to daily newspaper Notícias, Paulo Zucula said that the process was still under negotiation and that only the interested companies were currently involved.
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Brazil to invest $300M in Ghana
In Ghana, Brazil’s Ambassador, Luis Fernando Serra stated in an interview with City & Business Guide that the Brazilian Government will be constructing a $300 million sugar cane facility to produce 100,000 cubic meters of ethanal and 42 MWe from the resulting bagasses.
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Brazil To Build Ethanol Factory In Ghana
The Brazilian government is to establish a $300 million sugar cane plantation to produce over 100,000 cubic meters of ethanol at Makango, near Salaga in the Northern region. Ethanol is expected to become Ghana’s fourth major export after cocoa, gold and timber. The factory would generate 42 Megawatts (MW) of energy from Bagasse, which is the fibrous matter that remains after the sugar cane is crushed to extract the juice.
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Russia’s FM to pay official visit to Kenya
Russia’s Minister for Foreign Affairs Sergey Lavrov will make an official visit to Kenya from November 15-17, as part of his two African nation’s tour that will also take him to Nigeria, Kenya’s ministry of foreign affairs disclosed on Friday in a statement. This will be the first visit to Kenya by a Russian minister for Foreign Affairs. He will be accompanied by senior government officials from the Russian government.
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Russia May Help Nigeria Build Nuclear Plant, Launch Satellites
Russia and Nigeria are continuing discussions about building a nuclear power plant in Africa’s most populous country to help boost its power supply, Russia’s Foreign Minister Sergey Lavrov said. Russia also plans to help launch two Nigerian satellites, Lavrov said at a briefing at the end of a one-day visit to the West African country today. He didn’t provide further details.
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Russia to invest in East Africa
Russia to invest in a modern railway system between Kenya and Uganda to enhance her economic presence in the region. The Russian government also intends to invest heavily in mining, education, transport and pipeline, according to the Russian foreign Affairs Minister, Sergey Lavrov.
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SA wants to be 5th 'Bric', Russia says
South Africa has "applied" to join the four-member "Bric" grouping of fast-growing emerging markets, Russian President Dmitry Medvedev said at the Group of 20 meeting on Friday. South Africa is the world's 31st-largest economy, according to World Bank data for 2009 and is less than a quarter the size of the smallest "Bric" economy, Russia, in the informal grouping that also numbers Brazil, India and China.
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Cosatu blocking job creation: Zille
The government will not be able to emulate the growth performance of BRIC (Brazil, Russia, India, China) countries until it stands up to Cosatu, says Democratic Alliance leader Helen Zille. Zille wrote in her weekly newsletter that the Congress of SA Trade Union"s inflexible approach to labour legislation was undermining the chances of young South Africans to find jobs. "The truth is that whatever the ANC government pledges it will not be able to emulate the BRIC countries unless it calls Cosatu"s bluff," Zille said.
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SA boosts Africa's profile as development partner
South Africa is looking to fellow African states and high-growth developing nations to join the country in trade partnerships that would promote its global standing and economic growth. "As a country and a people, we stand ready to make our contribution both in our interest and in the interest of all of Africa's people," said Lindiwe Sisulu, the chair of International Cooperation, Trade and Security cluster during a parliamentary media briefing on the delivery agreement for Outcome 11.
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Bay mom in court bid to get child back from China
IN the first application of its kind in South Africa, a Port Elizabeth mother has gone to the High Court in a last, desperate attempt to effect the return of her child from his father in China. The application against the Department of International Relations and Co-operation seeks to compel the South African government to lend diplomatic assistance and effect the safe return of the child.
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5. Blogs, Opinions, Presentations and Publications

Ghana's New China Deals: What's the Real Story?
On September 22, 2010, Reuters reported a phone interview with Ghana's deputy finance minister in Beijing, who appeared to put the China Eximbank credit figure alone at US$9.87 billion, A separate story on the Government of Ghana's official website September 22, 2010 reported the Eximbank credit at $10.4 billion and said that it was "concessionary"). Now the story appears to have changed.
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VIDEO: Brazil invests big in Africa
Brazilian companies are investing billions in Africa for access to natural resources, especially in Mozambique.
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China and China-US Relations in the Era of Globalization - Speech by Ambassador Zhang Yesui at the University of Nebraska-Lincoln
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Is there a China-India race in Africa?
Once again Prime Minister Manmohan Singh asserted recently, while answering a journalist, that the world was large enough to accommodate the growth ambitions of both India and China. In a similar vein but speaking specifically about Africa, a senior official in India's Ministry of External Affairs observed, at a recent seminar in Delhi, that India-Africa partnership 'stands on its own', thereby denying indirectly that China had anything to do with it. Characterising it as 'an old relationship, very mature and productive', he aptly remarked that it 'has worked for us and for them (i.e., Africans)'.
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China buys up the world
IN THEORY, the ownership of a business in a capitalist economy is irrelevant. In practice, it is often controversial. From Japanese firms’ wave of purchases in America in the 1980s and Vodafone’s takeover of Germany’s Mannesmann in 2000 to the more recent antics of private-equity firms, acquisitions have often prompted bouts of national angst. Such concerns are likely to intensify over the next few years, for China’s state-owned firms are on a shopping spree. Chinese buyers—mostly opaque, often run by the Communist Party and sometimes driven by politics as well as profit—have accounted for a tenth of cross-border deals by value this year, bidding for everything from American gas and Brazilian electricity grids to a Swedish car company, Volvo. There is, understandably, rising opposition to this trend. The notion that capitalists should allow communists to buy their companies is, some argue, taking economic liberalism to an absurd extreme. But that is just what they should do, for the spread of Chinese capital should bring benefits to its recipients, and the world as a whole.
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Being eaten by the dragon
A FEW years ago two executives of an international oil company were working late in its otherwise deserted office in England. A stunning young Chinese woman arrived at reception. “She was very attractive, decked out in Gucci,” one of them says. She delivered a letter from Sinopec, one of China’s giant, state-controlled energy firms, proposing a multibillion-dollar takeover. The executive adds, a little wistfully, that she then disappeared into the night in a car with local licence plates, never to be seen again. His firm was soon bought by another Chinese company. Since then Western bosses have been tapped by Chinese firms at conferences in Toronto and Cape Town and received walk-in offers in Scandinavia. Companies across Europe have solicited Chinese investment. Bankers all over the world have touted lists of Western takeover candidates among China’s big firms. This year buyers based in China and Hong Kong have accounted for a tenth of global deals by value, including investments in oil and landmark takeovers in industry, such as Geely’s purchase of Volvo, a Swedish carmaker. A decade ago China urged its companies to expand under the slogan “go out”. Now it is really happening.
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Who is behind China’s Foreign Policy?
So who influences China’s foreign policy today? As Jakobsen and Knox assert, Chinese decision making, like that of Brussels, is guided by the consensus principal. This need to appease all sides, means that any of the “cacophony” of voices vying to influence Chinese foreign policy can do exactly that by swaying the opinion of just one top leader.
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China's African safari strictly business
Read China's state media and you will learn that, thanks to projects financed by Chinese companies and the central government, Africa is booming while the continent's political leaders trip over one another to express their appreciation for Beijing's helping hand. And it's all true. Bridges, dams, roads, railroads and airports are rapidly multiplying. Oil refineries and zinc, copper and cobalt mines are going at full tilt. Beijing is even catering to Africa's favorite sport as Chinese-designed and Chinese-built football stadia sprout up across the continent.
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Building Africa with Brics
In the 2003 Goldman Sachs report, ‘Dreaming with BRICs: The Path to 2050’, BRIC nations are projected to outperform many of the developed economies by 2050 in various key economic sectors. BRIC countries, bilaterally and as a collective block, represent an important economic partnership for African economies. From oil exploration to uranium exploitation, steel and textile industries, construction, finance, banking and agriculture. In the past 12 months, the president of the largest African economy, Jacob Zuma, crisscrossed the BRIC countries to negotiate entry into these nations. At present, South Africa is a member of IBSA, (India, Brazil and South Africa), trading US$7 billion at 2007 figures alone. This is the right approach as the centre of economic gravity and pulse in global commercial and finance has shifted from the West towards the BRIC countries and other virgin emerging markets, such as Africa. The economic strength and increasing policy symmetry of the BRIC’s has quickly eroded calls for a “G2” global economic system, the concept of ChiMerica, (China and America).
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Ties with China: good for some, bad for others
China cannot keep out of the news. The news and the reasons are varied and include these kinds of subjects. Dissident wins Nobel Peace Prize but remains in jail. Artist put under house arrest. The value of the Yuan is artificially kept low to boost Chinese exports. The latest on the long list, usually of complaints, is about the visit of Mr David Cameron, Prime minister of Britain. Even this has the usual slant familiar with news stories to do with countries outside the West.
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'India-Africa relationship a defining partnership'
Union Minister of Commerce and Industry Anand Sharma today described the India-Africa partnership as the defining partnership of the 21st century. India and Africa share a strategic relationship with each other which is aimed at sharing each others’ experiences and resources for mutual benefit, he added. Sharma made a strong commitment to India’s engagement with Africa and said that Free Trade Agreements (FTA) between India and different regions of Africa are the natural and the next logical step towards deepening the partnership between the two regions.
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