Latest Edition: Emerging Powers News Roundup

1. General

'Walmart deal must not undermine SA'
The government welcomes investment by foreign companies as long as the deals do not undermine "productive capacity", Trade and Industry Minister Rob Davies said on Wednesday. Davies said this in answer to a question on Walmart's 51% acquisition of local retailer Massmart Holdings. The R16.5bn deal, which is being assessed by the Competition Tribunal, is opposed by public interest groups led by the SA Commercial, Catering and Allied Workers Union (Saccawu), a Cosatu affiliate. Cosatu general secretary Zwelinzima Vavi said this week that the campaign against Walmart must be heightened. He accused Walmart of having no regard for local procurement and workers' rights.
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2. China in Africa

Zambia Drops Case of Shooting by Chinese Mine Bosses
In what could be a politically explosive decision, prosecutors in Zambia have decided not to pursue a case against two Chinese supervisors who shot 13 coal miners last year during a wage protest, the managers’ lawyer said Monday. The episode, which occurred at the Chinese-owned Collum Coal Mine on Oct. 15, was viewed as an outrage by many Zambians who resent the enormous economic influence China has over their country.
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Libya rebel oil cargo China-bound –sources
China will buy the first oil cargo from Libyan rebels via trading house Vitol, sources said on Thursday, in a trial deal which is likely to clear the way for Europe to resume badly-needed purchases of Libyan oil. Traders, however, added that it could take a long time before flows of crude from Libya reach substantial levels. The war has cut oil output by 80 percent while rebels and government forces trade charges over attacks on oil fields
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China-aided agriculture centre in Tanzania wins big applause
The Demonstration Centre aided by the Chinese government in Tanzania on Saturday was highly hailed by the President Jakaya Kikwete, central and local government officials as well as residents. At the handover ceremony at Dakawa town in Morogoro Region, about 240 km northwestern of Dar es Salaam, President Kikwete lauded China's assistance to Tanzania, terming the project as another boost to agricultural development in the East African country.
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Nigeria-China Trade Hits $7.76bn
The trade between Nigeria and China has hit a historical new high of $7.76 billion, the Chinese Ambassador to Nigeria, HE Deng Boqing, has said. According to him, Nigeria has become the fourth largest trade partner and the second largest export market of China in Africa. The envoy spoke during a one day seminar on China-Nigeria Trade Promotion jointly organised by the Economic and Commercial Counselor’s office, Chinese Embassy and the National Association of Nigerian Traders (NANTS), in Lagos.
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China vehicle maker to open Kenya plant
China’s vehicle manufacturer Foton is setting up an assembly plant in Kenya in what is set to heighten the battle between China and Western nations for business in Kenya. The Sh1.2 billion assembly plant is expected to churn out 10,000 units of prime movers, tippers, buses, pick-ups, and light commercial trucks per year, making it one of the biggest foreign direct investments by a Chinese company. Foton said it is setting up the plant to avoid paying a 25 per cent import duty on cars to allow in its low cost products putting it in a head-to-head battle with Japanese and European brands such as Mercedes, Iveco, Mitsubishi, and Nissan.
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VP: Kenya remains preferred investment destination
A leading Asian commercial vehicle manufacturer, Foton East Africa has opened its operation in Nairobi targeting the larger East African market. Foton runs a chain of companies in other leading industrial hubs across the world including Japan, Germany and Taiwan with a work force of over 28,000 employees and researchers. Speaking during the groundbreaking ceremony, Vice President Kalonzo Musyoka, who was the Chief Guest, commended the company for setting a base in Kenya, noting that the move was a clear demonstration of their confidence in Kenya.
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BEDIA encourages bilateral relations with China
Botswana Export Development and Investment Authority (BEDIA) recently hosted a Chinese delegations in a business seminar last week at the Gaborone International Convention Centre (GICC). The delegation’s visit to Botswana was organised by China Council for the Promotion of International Trade (CCPIT) and it was led by the Council’s secretary General, Xu Hubin. BEDIA, whose primary mandate is to promote investment in the country with special emphasis on selected service sectors and export-oriented manufacturing, used the gathering as a stepping stone to promoting bilateral relations.
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Ecobank opens 'China desk' to manage Africa loans
Pan-African bank, Ecobank Transnational Inc, will open a China desk next week aimed at easing the flow of Chinese loans for African infrastructure projects, a bank official said. The desk will be located in Accra and include two Ecobank employees and two senior staff from the Bank of China, Henry Ampong, Ecobank's global account manager, told Reuters. "You'll see lots of funds being channeled through Ecobank for infrastructure projects especially in Liberia, Ghana and Sierra Leone where massive reconstruction is taking place," Ampong said in an interview.
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ANC's PBF strengthens ties with Chinese to promote trade
The ANC's Progressive Business Forum (PBF) met in Cape Town recently with the China Council for the Promotion of International Trade (CCPIT). The delegation from the CCPIT, under leadership of its Secretary-General, Xu Hubin, met with the Co-Convenors of the PBF, Daryl Swanepoel and Renier Schoeman, with a view to augmenting the trade promotion work already being done by the two sides in both countries.
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3. India in Africa

Malawi Farmers Scramble to Produce Pulses for India
Farmers in the landlocked southeast African country of Malawi are shifting from their traditional crops to grow pulses to meet the increasing demand in the international market, especially from India. The government in Malawi is encouraging farmers to grow more pulses to meet the demand in India, said Malawi businessman John Jimu Banda, who was here to attend the CII-EXIM Bank India-Africa Business Conclave March 27-29. Apart from attending the meet, Banda intended to buy some equipment, but he is going back to his country with an export order for the supply of pigeon pea or tuar dal.
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Shapoorji, Ethiopia ink 50,000ha land deal
The 140-year old construction firm, Shapoorji Pallonji and Co. Ltd, on Tuesday signed an agreement with the government of Ethiopia to take on lease up to 50,000ha of land to cultivate pongamia pinnata—a feedstock for biodiesel—in its first major step to expand its fledgling renewable energy business. “Initially they will take around 10,000ha and gradually scale up cultivation,” said Mehreteab Mulugeta, minister councillor for economic affairs at the Ethiopian consulate in New Delhi. Ashok K. Gupta, who heads the Shapoorji Pallonji Group’s energy division, confirmed the signing of the lease agreement but refused to give any other detail.
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Indo-African export fund fails to impress banks
Indian commercial banks are reluctant to participate in the proposed Indo-African export fund, owing to a limited pool of long-term resources for such programmes. The Union government had thought of the fund to boost exports, especially project exports, to that continent. The finance ministry had sought views from banks through the Indian Banks Association (IBA), on the proposal. IBA had also consulted the Export-Import Bank of India. The government had suggested it contribute 25 per cent, while banks contributed the other 75 per cent for the fund. The proposed size is not clear.
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India-Zimbabwe to work for early conclusion of BIPA
India and Zimbabwe on Tuesday agreed to work for early conclusion and ratification of the Bilateral Investment Protection Agreement (BIPA) to make it operational at the earliest for the benefit of both the countries. This was agreed to during the bilateral meeting between the Union Commerce and Industry Minister, Anand Sharma and visiting Industry and Commerce Minister of Zimbabwe, Prof. Welshman Ncube, here.
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Tanzania offers India uranium deal
Even as nuclear power comes under a cloud following the Fukushima disaster in Japan, Tanzania, East Africa’s economic powerhouse, has invited India to invest in uranium mining and underlined that India is a ‘special friend’ it turns to for advice and capacity building. ‘Uranium was discovered recently. Uranium mining is a relatively new area. We need good friends like India to invest in this area,’ Tanzania’s Prime Minister Mizengo Kayanza Peter Pinda told a group of Indian journalists who are visiting this country.
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Low cost, high returns make Africa attractive to India Inc
Several Indian companies have planned huge investments in the African mining and agriculture sectors, buoyed by the prospects of high returns, on the back of rich resources and low labour and input costs, stakeholders maintain. "Africa offers the most attractive returns when it comes to mining and agriculture. A lot of Indian companies are already there, and a massive investment is in the pipeline," K.S. Aswathanarayana, chief executive of Jaguar Overseas, told IANS.
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4. In Other Emerging Powers News

SA firm to build $251m Zambia sugar plant
A South African company plans to build a $251-million sugar and bio-ethanol plant in Zambia, one of the largest non-mining investments in recent years in Africa's biggest copper producer, an official said on Saturday. Muhabi Lungu, a director at the Zambia Development Agency (ZDA), said AGZAM of South Africa would start developing the project next month after signing an agreement with Zambia last week.
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Interview: Zuma urged to stand for African interests during BRICS summit
A leading South African business executive has called on President Jacob Zuma to stand for African markets and "not only the interests" of his country during the forthcoming BRICS summit to be held in China this month. South Africa is the only African nation in the BRICS which is an acronym for Brazil, Russia, India, China and South Africa, a forum that provides its members with opportunities to network and to initiate economic arrangements. Under this arrangement, South Africa is expected to push for Africa to integrate trade and policies with the other members.
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‘More development zones needed’
The Department of Trade and Industry should look at spreading the industrial development zones (IDZs) to other parts of the country if South Africa was serious about boosting its manufacturing economy, analysts at Frost & Sullivan said yesterday. If the country’s manufacturing industry was competitive enough, it would be able to attract foreign direct investment (FDI) flows and South Africa would see fewer investors leaving for countries like China, said research analyst Tatenda Zingoni. The manufacturing and mining sectors have both seen a significant decline in FDI inflows in recent years.
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China, India Seeking Coal From South Africa, Universal Says
China and India, Asia’s two fastest- growing economies, are seeking to invest in coal assets in South Africa to diversify supplies after disruptions in output from Australia and Indonesia, said Universal Coal Ltd. “China gets most of its coal from Australia, but because of the floods in Queensland, you’ll need time and money to rebuild that,” said Tony Harwood, chairman of the Sydney-listed developer of South African coal mines. “A new major market for coal from South Africa is India.”
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5. Blogs, Opinions, Presentations and Publications

BRICS Form Unstable Foundation for Multilateral Action
The abstention by the BRIC nations (Brazil, Russia, India, China) failing to support UN Security Council Resolution 1973 raises serious questions about the future functionality of the multilateral system – a system in which the BRIC countries aspire to have a stronger voice. Effectively, the BRICs sent a message of opposition to allied intervention in countries experiencing fundamental political change. Their vote was an implicit acknowledgement that such collective action often has unintended consequences, and that it can result in one side being given an undue advantage over another. But a less obvious driver for their position is also the notion that one day such a vote could be cast against one of them.
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Potential political clout of BRICS emphasised ahead of summit
The upcoming summit of the nascent Brazil, Russia, India, China and South Africa (BRICS) bloc, which will take place on China’s island province of Hainan on April 14 and 15, could add political and diplomatic meat to the bones of what has hitherto been a loose economic concept, first coined by an investment banker ten years ago. Even the decision to open the grouping up to South Africa has been acknowledged as a “political choice”, designed primarily to ensure that Africa’s voice is represented in what could eventually evolve into a powerful new developing-economy platform.
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India's tryst with LDCs: Is it working?
Engaging the Least Developed Countries transcends our campaign for a permanent seat at the U.N. Security Council; it touches the very core of our national convictions. If South Block mandarins are looking for reasons why their initiative to host the historic India-Least Developed Countries (LDCs) Ministerial Conference received only limited notice in the country, they need not look far. Looking within will do; an exercise not just they but we, as a nation, should undertake with candour.
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