Latest Edition: Emerging Powers News Roundup

1. General

How we engineered the food crisis
Thanks to dysfunctional regulation of genetic engineering and misguided biofuels policy, the world's poorest are going hungry. Food prices worldwide were up by a whopping 25% in 2010, according to the UN's Food and Agriculture Organisation, and February marked the eighth consecutive month of rising global food prices. Within the past two months, food riots helped to trigger the ousting of ruling regimes in Tunisia and Egypt. (It is noteworthy that food prices increased 17% last year in Egypt, and the price of wheat, a critical staple there, soared by more than 50%.) For poor countries that are net importers of food, even small increases in food prices can be catastrophic, and recent bumps have been anything but small.
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Japanese quake threatens N36tr trade, inflow to Africa- Standard Bank
The implication of last week’s devastation in far away Japan was brought closer home to Africa weekend, as Standard Bank Plc, warned that the continent stands to lose a major part of income from bilateral trade and aid. According to 145-year old Standard Bank, with presence in 17 nations in the continent, include Nigeria’s Stanbic IBTC Bank; as well as Russia, Brazil and China, the total value of bilateral trade between Africa and Japan in 2010 stood at $24 billion (about N36 trillion), representing a 30 per cent improvement over the 2009 level.
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Japan impact on SA probably limited – Mnyande
The impact of Japan's nuclear crisis on South Africa's economy is likely to be limited but if it worsens it could hurt, Reserve Bank chief economist Monde Mnyande said on Tuesday. Mnyande said South Africa's economic recovery was continuing and preliminary investigations showed that while Japan was a significant commercial partner, the "near-term negative impact in terms of trade linkages is likely to be limited".
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Foreign groups snap up South Sudan farmland: report
Foreign interests have snapped up large swathes of land in strife-riven southern Sudan in just a few years, threatening food supplies and the displacement of local people if left unchecked, a report said. Sudan has emerged as one of the hotspots for the acquisition of African farmland, which has become a target for countries including China and Gulf Arab states, which seek to secure food supplies. Rights groups have warned that what they see as a "land grab" risks worsening hunger and heightening social tensions in poor African nations.
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2. China in Africa

Visiting Chinese Vice Premier Holds Talks with Kenyan President
Chinese Vice Premier Wang Qishan held talks with Kenyan President Mwai Kibaki in Nairobi on Friday, stressing that China would like to make joint efforts with Kenya to further promote the long-term, stable and reciprocal bilateral cooperation in various fields. Wang relayed cordial greetings of Chinese President Hu Jintao to Kibaki. During their talks, Wang expressed his satisfaction with the continuous development of bilateral relations, adding that China-Kenya relations have witnessed fruitful and comprehensive cooperation in economy, trade, investment, culture, science and technology, tourism and media.
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Seychellois president meets visiting Chinese vice premier on bilateral co-op
Visiting Chinese Vice Premier Wang Qishan called on the Seychellois President James Michel at State House here on Thursday before winding up an official visit in Africa. Wang highly commended the growing bilateral ties with abundant fruits in trade, investment, tourism, culture and health care sectors, since the two countries established diplomatic ties in 1976. He said that President Michel's presence at 2006 Beijing Summit of Sina-Africa Forum, 2008 Beijing Olympics, 2010 Shanghai Expo, is a sound proof of the cordial and continuously improving bilateral relationship.
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Zim gets US$700 million from China
China yesterday unveiled nearly $700 million lending to Zimbabwe, in the biggest package of loans from communist Beijing to this land locked but mineral rich southern African state, but demanded that Harare stay away from taking local Chinese businesses under its controversial indigenisation drive. The loans were a huge boost to financially stricken Zimbabwe, which has struggled to attract foreign aid, with Western financial institutions holding out for political and economic reforms before resuming lending to Harare, whose foreign debt stands at $7 billion.
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Zimbabwe, China sign $585 mn in trade pacts
Zimbabwe and China on Monday signed a raft of agreements worth $585 million (413 million euros) aimed at reviving the southern African country's health, mining and agriculture sectors. "We acknowledge the efforts by the China Development Bank to engage government in supporting Zimbabwe's most critical areas of energy, mining, transport, agriculture, manufacturing and tourism," said Zimbabwean Vice President Joice Mujuru. "These areas would assist in the growth of our economy."
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China calls for stability in Libya after attacks
China wants stability restored to Libya as soon as possible, the foreign ministry said in a statement on Sunday after Western forces launched strikes against Muammar Gaddafi's troops. Expressing regret about the attacks, the Chinese foreign ministry said that it hoped the conflict would not escalate and lead to greater loss of civilian life.
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3. India in Africa

AU to work closely with India on summit in Africa
The 53-nation African Union (AU) has assured India that it will work closely with New Delhi to ensure the success of the second India-Africa Forum summit here in May. Top officials of India and the AU met in the Ethiopian capital, the headquarters of the AU, last week and discussed the preparations and agenda for the second India-Africa Forum summit that will be held May 24-25.
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India welcomes pro-democracy wave in Middle East, North Africa: PM
India Friday welcomed the pro-democracy wave sweeping the Middle East and North Africa, with Prime Minister Manmohan Singh saying that 'these are decisions for countries and their citizens to take for themselves.' 'As a democracy, we are happy to see our brothers in West Asia (Middle East) and North Africa taking an increasing role in determining their own future. These are decisions for countries and their citizens to take for themselves, free of outside interference or coercion,' he said at the India Today Conclave here.
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Around 30 Mozambican businesspeople attend 7th Africa-India meeting
Some 30 businesspeople from Mozambique are due from 25 to 29 March to take part in the seventh Africa-India meeting due to take place in the Indian capital, New Delhi, a source from Mozambique’s Centre for investment Promotion (CPI) told Macauhub in Maputo. The trip to India is organised by the Mozambican Confederation of Economic Associations (CTA), by the Centre for Investment Promotion (CPI), the Office for Accelerated Development Economic Zones (Gazeda) and by the Institute of Export Promotion of Mozambique (IPEX). Indian companies have several business interests in Mozambique, including in the coal sector (in Moatize, Tete province), industry, telecommunications, light industry and railways.
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4. In Other Emerging Powers News

SA postpones Walmart, Massmart hearing
South Africa's antitrust watchdog postponed hearings into Wal-Mart's $2,3-billion bid for a controlling stake in domestic retailer Massmart after the government and unions asked for more time to submit additional information. Competition authorities are the last hurdle for the world's biggest retailer to take a 51% stake in Massmart after shareholders overwhelmingly voted in favour of the deal in January. The deal has pitted Wal-Mart against South Africa's trade unions, some of which have threatened to strike against the US giant.
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BRIC-Think Tanks Symposium starts in Beijing
The BRIC-Think Tank Symposium kicked off Thursday in Beijing with the theme of "Development, Cooperation and Sharing." The symposium aims to provide advice for the policy-makers who will attend the third summit of BRICS-country leaders in mid-April, Sun Jiazheng, chairman of China's Peaceful Development Foundation, said in remarks at the opening ceremony. BRICS countries refer to the five major emerging economies: Brazil, Russia, India, China and South Africa. That summit will be held in the southern city of Sanya, Hainan Province.
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China's ODI "set to grow" despite setbacks
China's overseas direct investment (ODI) is on a long-term upward trend despite a recent slowdown, partially due to political unrest in some African countries, Yao Jian, Ministry of Commerce spokesman, said on Tuesday. The political upheaval in Tunisia and Egypt and the Libyan situation have taken a toll but China's ODI will surpass foreign direct investment (FDI) in the country in the next five to 10 years, he said. Chinese companies invested in 680 overseas enterprises in the first two months of 2011, with investment growing by 13.1 percent from a year earlier to 5.27 billion U.S. dollars, the ministry announced on Tuesday.
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Russian Senator Margelov appointed special envoy to Africa
Russian President Dmitry Medvedev has appointed senior senator Mikhail Margelov special presidential envoy for cooperation with Africa, the Kremlin said on Monday. Margelov heads the State Duma's foreign relations committee and has held the post of presidential envoy to Sudan since 2008.
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Russia's Renova launches S.Africa manganese mine
Industrial giant Renova, controlled by Russian tycoon Viktor Vekselberg, said on Tuesday its joint venture in South Africa had launched a manganese mine to speed up tapping the country's huge mineral resources. It said in a statement the venture, the United Manganese of Kalahari, in which Renova holds 49 percent, aimed to supply to the market this year 1.8 million tonnes of the metal, a key element in steel production.
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Emerging powers join in opposition over Libya strikes
China said on Tuesday that Western air strikes on Libya risked a "humanitarian disaster", adding to the chorus of criticism from big emerging powers over the U.N.-authorised campaign. China, with Russia, India, Brazil and other developing countries have condemned the U.S.-led air strikes on Libyan leader Muammar Gaddafi as risky and unwarranted overreaching by the West. The shared opposition to the Libya campaign could become a point of diplomatic convergence among the "BRICS" bloc of major emerging economies -- Brazil, Russia, India, China and South Africa -- which hold a summit in south China next month.
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5. Blogs, Opinions, Presentations and Publications

SA’s 'no-fly' vote hits turbulence
South Africa's confused stance on Operation Dawn Odyssey against Libya was the result of bruising by the bad publicity that marked its first stint on the United Nations Security Council, South African diplomatic sources said this week. The South African delegation at the council voted in favour of a no-fly zone over Libya this week fully aware that enforcement of the resolution would entail air strikes. During its last spell as a non-permanent member under Thabo Mbeki, South Africa drew fire for its apparent indifference to human rights concerns in countries such as Burma and Zimbabwe. However, South African diplomats in New York this week insisted that South Africa voted for last week's resolution in the interests of protecting civilians from Muammar Gaddafi's forces in Libya and that the vote was not meant as an implicit approval of military intervention.
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Russia turns its attention to Africa
President Dmitry Medvedev has appointed the Chairman of the Federation Council’s foreign relations committee Mikhail Margelov the Russian envoy for cooperation with African countries, enlarging his duties, in contrast to his predecessor Alexei Vasilyev, who was responsible for communication with the African continent only. Constantine Garibov looks at the turning of a new page in Russo-African ties. In an interview for VOR, the new envoy declared that Africa is now a top priority for Russia.
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India watchful of threat from China
China’s evolving military profile has come under scrutiny from New Delhi, according to the latest annual report from the ministry of defence for 2010-11. The report states that “India is conscious and watchful of the implication of China’s evolving military profile in the immediate and extended neighbourhood. India’s policy is to engage with China on the principles of mutual trust and respect and sensitivity for each other’s concerns.”
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What’s in it for Beijing after the $700m loan?
At a time when the rest of the world has been telling the inclusive government to get its act together with regard to human and property rights violations, China has not found these tenets of democracy to be the yardstick for its investment. The fallout between Harare and the West has presented a unique opportunity for China to venture into Africa. On Monday this week, Zimbabwe and China signed nearly $700 million worth of loan agreements, the biggest package from Beijing since the formation of the unity government. However, many questions have surfaced, in the context of China’s controversial relationship with rogue states on the African continent. Shunned by the West, President Robert Mugabe has increasingly looked East for financial bailouts.
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India seeks natural resources in Africa but recognises continent’s development needs
India, today, in purchasing power parity terms, is the fourth-largest economy in the world, with a gross domestic product (GDP) of just over $4-trillion. (In terms of the official exchange rate, India’s GDP is $1,43- trillion.) This is the result of two decades of rapid and sustained economic growth. From 1991 to 2002, this averaged 6% a year, jumping to almost 9% annually for the period 2003 to 2007. The Great Recession slowed this to about 5% in 2008 and some 7,4% in 2009, but it recovered to about 9% last year. This growth stems from a process of economic reform which started in 1991 and which, in turn, was a response to a fiscal and balance of payments crisis. Despite several changes in administration, this reform process has been sustained. Consequencly, the Indian economy is generally expected to grow by 8% or more this year and by between 7% and 9% annually for the next three to five years. Like the Chinese dragon, the Indian tiger has developed a hunger for raw materials from foreign shores.
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