Latest Edition: Emerging Powers News Roundup
In this week's edition of the Emerging Powers News Round-Up, read a comprehensive list of news stories and opinion pieces related to China, India and other emerging powers....
Emerging Powers News Round-Up
31 January 2011
1. General News
Ethiopia: Mega irrigation project on disputed river planned
Ethiopian Prime Minister Meles Zenawi has announced plans to start an irrigation project on the trans-boundary Omo River. The announcement comes in spite of an unresolved contention raised over the government’s Gibe III Hydropower Project, which is currently underway to generate 1800MW. Analysts argue that Ethiopia should negotiate with countries like Kenya and Egypt before embarking on such projects.
U.N. to Step Up Battle Against Somali Piracy in Indian Ocean
A former Indian ambassador once jokingly remarked that one of the biggest misconceptions in the United States is that the Indian Ocean belongs to India. "Not so," he said, "but we wish we did." Today, the growing threats from Somali pirates in the Indian Ocean is causing alarm in a country considered a veritable superpower in Asia.
US in drive to raise African investment
THE US administration was planning to aggressively increase its foreign direct investment in Africa, Eric Silla, special adviser to the assistant secretary for African affairs at the state department, said yesterday. Mr Silla was speaking at a seminar in Pretoria at the University of SA on US foreign policy challenges in Africa. He dismissed suggestions that the US was trying to compete with Chinese interests in a quest to gain ground lost to the second- largest economy in the world.
Sudan: Post-referendum issues and implications for Africa
The central question is, now that the referendum is over, what is next on the agenda. What are the key issues that needs to be ironed out before July 9 2011. The main protagonists in the referendum from both the National Congress Party (NCP) and SPLM, have not agreed yet on post-referendum issues. Critical components of those negotiations will cover nationality, foreign debt which stood around US$36 billion, currency, assets including oil revenues, White Nile water sharing, borders and the status of civil servants. Seibeb notes the outcome of the referendum represents an interesting space for the emerging actors not to mention using carefully orchestrated moves to enter the playground already cut-off by China and United States.
2. China In Africa
TZ travellers read more in China visa delays
Tanzanians are blaming the Chinese Embassy in Dar es Salaam for taking too long to issue them with travel visas. They say that the process that has, for years, been taking not less than a week, was now consuming more than a month to accomplish.
Shareholder row a threat to Wesizwe's Chinese deal
Platinum junior Wesizwe is hopeful that infighting in the Bakubung community, its main empowerment shareholder, will not delay the shareholders' vote on a proposed Chinese investment of $877-million. The battles of the Bakubung, on whose land Wesizwe plans to build a mine with a capacity of 350000 ounces of platinum and related metals per year, led to the cancellation of Wesizwe's annual general meeting in August last year, as furious community members went to court to establish who had the power to vote their shares.
Economic projects in Angola may maximise impact of transport systems built by China
Angola may maximise the impact of the transport systems built by China by developing economic projects for specific areas and should seek out “sustainable partnerships," with the Chinese companies, according to a study by the OECD, NEPAD and the UN.
Mandarin for the future as China takes off
Mandarin is fast "becoming a good contender" against European languages such as German and French as China becomes a major global force. And increased relations between South Africa and the Far East country - and more recently an invitation by China for South Africa to join the Bric (Brazil, Russia, India and China) group of countries - are also feeding the demand to learn the language and culture.
Interview with Chinese Assistant Foreign Minister on the sidelines of AU Summit
“China supports Africa to strength its unity and explore development paths suited to its national conditions independently,” says H.E. Mr. Liu Zhenmin, Assistant Minister of Foreign Affairs of the People’s Republic of China
3. India In Africa
For UNSC seat, India woos Africa
India will give $250,000 to help build a monument against slavery and remember victims of the slave trade.
India’s diamond industry pins hopes on Zimbabwe exports
Indian diamond processors, who face a shortage of rough diamonds and, thus, a sharp rise in prices, are relieved after the Kimberley Process Certification Scheme (KPCS) last week approved Zimbabwe’s proposal to allow exports of its rough diamond stockpile. “We have received a letter from KPCS which says that the members (74 nations, including India) have approved Zimbabwe’s proposal requesting KPCS to allow it to export rough diamonds,” said Rajiv Jain, chairman, Gem and Jewellery Export Promotion Council of India (GJEPC), a government-approved body representing the Indian diamond processing industry. It is also the nodal agency for KPCS in India.Rough diamonds worth $160 million (around Rs.730 crore) are expected to arrive in India in a week, Jain and two other industry officials said. “Around four Indian firms had bought rough diamonds from Zimbabwe before KPCS banned from selling rough diamonds,” Jain said without disclosing the names of the companies.
Xavier Institute of Management facilitates foray into African markets
Xavier Institute of Management and Research, (XIMR), Mumbai, in association with Makerere University Business School, Uganda, launched their first-ever “Centre for Africa Studies” for the students of XIMR pursuing their Masters’ Programme in Management Studies. Initially launched for the students of XIMR, the program at a later stage will be offered to the corporate aspiring to expand their horizons in Africa.
Morocco looks forward to strong partnership with India says Ahmed Reda Chami
The Kingdom of Morocco looks forward to a strong partnership with India in sectors including solar & wind energy, agriculture and tourism’. Morocco plans to generate 42% of its energy from solar, wind and hydro projects by 2020 under Green Morocco Programme and this offers immense business opportunities, said Mr Ahmed Reda Chami, Minister of Commerce, Industry, Foreign Investment and New Technologies, Kingdom of Morocco addressing the Luncheon Session on Emerging Morocco – a gate to opportunities at the 17th Partnership Summit, 2011 organised by Confederation of Indian Industry (CII)
India to implement pilot project on renewable energy in Egypt
India will implement a pilot project on renewable energy in Egypt to enhance bilateral cooperation and encourage the Indian private sector to participate in developing wind and solar energy sectors in the country. The two sides also signed a MoU during the ongoing visit by the minister of New and Renewable Energy Farooq Abdullah.
Of eggs, medicines and growing Indian connection in Liberia
If you order a couple of fried eggs for breakfast in any restaurant in Monrovia, the capital of Liberia, the eggs are almost certain to be from India. Almost 90 percent of pharmaceuticals sold in the West African country are also from India.According to India's Honorary Consul General in Liberia Upjit Singh Sachdeva, 'There are no poultry and dairy farms in Liberia, and all the eggs are imported from India while chicken and meat are imported from South America and other countries.'
Indian bank expanding and recruiting in Africa
Banks from the developed world have long invested in emerging markets to diversify and find superior growth. But a new trend is for emerging markets institutions looking at opportunities in Africa. The Chinese are well-established, the Russians have made a mark, notably with Renaissance Capital, but 2011 might be the year of India. This week the Indian trade minister has made a high-profile official state visit to South Africa, as two-way trade between the two countries is growing beyond expectations and MMTC, india’ state-owned commodity trading enterprise, has opened its first African branch in Johannesburg’s Sandton business district. South Africa has just been formally invited to join the Bric bloc, made up of Brazil, India, Russia and China and in April it will attend the Bric summit in China for the first time.
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Indian consumer firms eye Africa as next growth driver
Indian consumer goods makers are scrambling to buy assets in Africa, applying their knowledge of challenging, lower-income markets to a continent where spending power is on the rise. Tapping Africa opens up new growth avenues for cash-rich Indian makers of personal care products such as soaps, shampoos, hair and skin care products, with rising costs and fierce competition squeezing profits at home.
Nigeria, India bilateral trade at $8.7 billion news
India will intensify efforts to correct the yawning imbalance in bilateral trade with Nigeria. India is major importer of Nigerian crude and the balance of payments is skewed heavily in Nigeria's favour.
Ethiopia seeks investment from India
Ethiopia is becoming a major centre for Indian investment in Africa as companies seek new ventures in mining, textiles, leather, education and the hospitality industry in one of the world’s most oldest countries. The Ethiopian government has introduced new policies aimed at getting more investments in mining and increasing the sector’s contribution to the country’s funds.
4. In Other Emerging News
SA misses a trick as Saudi Arabian links fall into abeyance
South Africa should take Saudi Arabia seriously as a commercial partner. South Africa’s evolving South-South strategy, centred on Brazil, Russia, India and China, should include countries in the Persian Gulf region and the broader Middle East. Saudi Arabia, in particular, is a country with which South Africa should deepen trade and investment ties.
Joining BRIC gives SA leverage
Being a member of the BRIC [Brazil, Russia, India and China"> group of emerging markets is “an important leverage point” for SA, Goldman Sachs SA MD Colin Coleman told an Economic Outlook 2011 conference on Wednesday.
South Africa to Launch Development Aid Agency
South Africa announced last week that it will launch its own development aid agency in 2011 – the South African Development Partnership Agency. This move places South Africa ahead of other emerging donors such as India and China , who have yet to create separate agencies to dispense aid. Perhaps this is one more indication that the old 20th century paradigm of rich Northern donors and poor Southern participants continues to be challenged with the emergence of new donors. And will South Africa join DAC?
SA turns to Brics for help in training of diplomats
SA will, in the coming months, approach fellow members of the Bric bloc Russia and China to train local diplomats in commercial diplomacy. Diplomats trained in commerce and economics are indispensable in negotiating favourable trade and investment agreements with other countries. Russia, and more particularly China, have been aggressively pursuing trade deals abroad.
Trade Imbalance in Cameroon-South Africa Relations
A South African delegation is presently in Cameroon for a five-day economic consultation to rebalance the trade deficit. The Governments of Cameroon and South Africa are finalizing discussions on how to balance the imbalance in trade relations between the two countries.
SA must proceed cautiously with BRIC countries, say analysts
South Africa's invitation to join the exclusive Brazil, Russia, India and China (BRIC) grouping has been welcomed by many but some analysts caution that the country needs to tread carefully if it is to avoid being taken advantage of by its much larger fellow BRIC members. Mzukisi Qobo, who heads the emerging powers programmes at the South African Institute of International Affairs (SAIIA), warns that it is important for the South African government to devise an effective foreign affairs strategy if the country is to benefit from being a BRIC member. He believes that there has been no sign - even in the Department of International Relations and Co-operation's White Paper on Foreign Policy submitted to Cabinet last year - that the South African government has held a serious process to map out how it will contribute to and benefit from being on the informal BRIC forum.
Lack of risk management exposes BRIC economies survey
Rapidly growing BRIC emerging economies are vulnerable to external shocks as they lack adequate risk management and must synchronise fiscal and monetary policies, a survey of finance ministry officials showed. The survey, released on Monday by consultancy Booz & Company, said the role of finance ministries have expanded far beyond their traditional fiscal mandate and they must reform so that they are not overly driven by interventions, near-term fiscal targets and benchmarking against local peers.
SA will reap biggest harvest in trade deal
Negotiators from India and the Southern African Customs Union (Sacu) are finalising request lists of products to benefit from lower trade tariffs. An agreement could lead to increased trade between South Africa, by far the largest member of Sacu, and India. The lengthy negotiations for a preferential trade agreement were given new impetus following a state visit by President Jacob Zuma to India in June. Such agreements allow countries to negotiate lower import duties, giving them a competitive advantage over exporters without such contracts.
Japan, China battle for African telecom investments
A battle for supremacy in investment in Africa has emerged between Japan and China, which are now competing for the dominance of the region's telecom market. A battle for supremacy in investment in Africa has emerged between Japan and China, which are now competing for the dominance of the region's telecom market. China has offered more than US$10 billion in funding for telecom and other related investments in the region. The Japanese government is also pumping billions of dollars into the Common Market for Eastern and Southern Africa (Comesa) and some Southern Africa Development Community (SADC) countries. The investments come in the wake of African governments' push for improved telecom services.
5. Blogs, Opinions and Reports
UNESCO Science Report 2010
The report depicts an increasingly competitive environment, one in which the flow of information, knowledge, personnel and investment has become a two-way traffic. Both China and India, for instance, are using their newfound economic might to invest in high-tech companies in Europe and elsewhere to acquire technological expertise overnight. Other large emerging economies are also spending more on research and development than before, among them Brazil, Mexico, South Africa and Turkey.
Report Available here: Read More
The Emerging 7 will overtake the G7: Anand Sharma
The collective response in times of crisis has demonstrated the power of partnerships on a global scale – whether it is challenge of climate change or of global trade agreement, nations must act in unison, said Mr. Anand Sharma, Chairman, The Partnership Summit 2011 & Minister of Commerce and Industry, Government of India in his Inaugural address at the 17th Partnership Summit 2011. Mr Sharma highlighted the role of the developing nations in the changed scenario and said that today more than half of the world’s economic growth is coming from the developing countries and that the Emerging 7 will overtake the G7.
Changing international views on Zimbabwe
There is no single view of Zimbabwe internationally. As 2011 begins, the many views fragment or develop internal variations almost as a parallel to the fracturing of the Zimbabwean political landscape. The fissures within Zanu PF and MDC-Mutambara, the readvent of ZAPU, the lacklustre performance of Morgan Tsvangirai as Prime Minister, and the self-seeking demeanour of elected parliamentarians on all sides, have created an international sense that there is neither predictability nor governmental capacity in the present or near-future Zimbabwe.