Africans rejoiced at the victory of Obama. I was one of them. After a wide-awake night, in the unreality of dawn’s light, my tears ran as he gave his victory speech. At that point, I was also a winner. The same happiness that ran through me when Nelson Mandela was released and the new South African statesman consolidated the path for the dignity of Africa.
On the night of November 5, the new North American president was not only a man talking. He was the reborn voice of suppressed hope rising, free, within us. My heart had voted, even without permission: used to expecting little, I celebrated a victory without dimensions. Going out on the street, I found that my city had moved to Chicago, blacks and whites breathing and sharing the same happy surprise. Because the victory of Obama was not one race over another: without the mass participation of Americans of all races (including the white majority) the United States of America would not have given us reason to celebrate.
In the following days, I was taking in the euphoric reaction from the nost diverse corners of our continent. Anonymous people, ordinary people wanted to witness to their happiness. At the same time I was taking notes, with some reservations, of the messages of solidarity from African leaders. Almost all called Obama “our brother”. And I thought: are all these leaders being sincere? Is Barack Obama actually related to so many people so politically different? I have doubts. In the rush to see only the prejudices of others, we are not able to see our own racism and xenophobia. In haste to condemn the West, we forget to accept lessons arriving for us from the other side of the world.
It was then that I saw a text by a Cameroonian writer, Patrice Nganang, entitled: “And if Obama were Cameroonian?”. The issues that my colleague of Cameroon raised prompted several questions, all tied to the following hypothesis: and if Obama were African and running for the presidency in an African country? These are the questions I would like to explore in this text.
And if Obama were an African and an candidate for the presidency of an African country?
1. If Obama were African, his opponent (any of Africa’s George Bushes) would find a way to change the constitution to prolong his mandate beyond the expected term. And our Obama would have to wait a couple more years to run again. The wait could be long, if we take into account the permanence of a single president in power in Africa. Some 41 years in Gabon, 39 in Libya, 28 in Zimbabwe, 28 in Equatorial Guinea, 28 in Angola, 27 in Egypt, 26 in Cameroon. And so on, running through as many as 15 presidents on the continent in office for more than 20 consecutive years. Mugabe will celebrate his 90th birthday when the latest mandate which he imposed in defiance of the popular verdict runs out.
2. If Obama were African, it is probable that, being a candidate of the opposition party, he would have the opportunity to campaign. They would threat him, for example, as in Zimbabwe or in Cameroon: he would be physically attacked, arrested again and again, have his passport withdrawn. The Bushs of Africa do not tolerate opponents, do not tolerate democracy.
3. If Obama were African, he wouldn’t even be eligible in many countries because the elites in power invented restrictive laws that close the doors of the presidency to children of foreigners and descendants of immigrants. The Zambian nationalist Kenneth Kaunda is being questioned, in his own country, as a son of Malawians. They conveniently “discovered” that the man who led Zambia to independence and ruled for more than 25 years was, after all, a Malawian, and therefore had governed “illegally” for all this time. Arrested for alleged coup intentions, our Kenneth Kaunda (who gave his name to one of the most prominent avenues of Maputo) was banned from engaging in politics, thus freeing the regime of an opponent.
4. Let us be clear: Obama is black in the United States. In Africa he is mulatto. If Obama were African, he would see his race used against him. Not that skin color is really important for people who want to see leaders that are competent and and work seriously. But the predatory elites would campaign against someone who they would designate as “not an authentic African.”. The same black brother who is hailed today as the new American president would be humiliated at home as being representative of “the others”, those of another race, another flag (or perhaps no flag at all)..
5. If he were African, our “brother” would have to give an account to moralists when he thought of including thanks in his speech for support from gays. A mortal sin for advocates of the so-called “pure African.” For these moralists - so often in power, or with the powerful - homosexuality is an unacceptable defect that is external to Africa and to Africans.
6. If he should win an election, Obama would probably have to sit at the negotiation table and share power with the loser, in a degrading negotiating process that in some African countries allows the loser to renegotiate that which seems sacred - the will of the people expressed in the votes. At this point, Barack Obama would be sitting at a table with a Bush in endless rounds negotiating with African mediators who would tell us to be content with crumbs from those electoral processes that do not satisfy the dictators.
Inconclusive findings
Make no mistake: there are exceptions to this general picture. We all know the exceptions we are talking about, and we Mozambicans ourselves, we were able to make one from such conditions.
And equally make no mistake: all these obstacles to an African Obama would not be imposed by the people, but by the power holders, by elites that unscrupulously make governing a source of enrichment.
The truth is that Obama is not African. The truth is that Africans - ordinary people and anonymous workers - celebrated with all their heart the American victory of Obama. But I do not believe that dictators and corrupt African leaders have the right to be invited to this party.
Because the joy that millions of Africans felt on November 5 came because they invested in Obama exactly the opposite of what the know from their experience with their own leaders. As much as it hurts us to admit it, only a minority of African states know or knew leaders preoccupied with the public good.
On the same day that Obama was confirmed the winner, the international media was filled with terrible news about Africa. On the same day the victory of most Americans, Africa was still being defeated by war, mismanagement, the excessive ambition of greedy politicians. After they killed democracy, these politicians are killing politics itself. What is left is war in some cases. Iun others, withdrawal and cynicism.
There is only one real way of celebrating Obama in African countries: it is to struggle so that more flags of hope may rise here in our continent. It is to struggle so that the African Obamas can also overcome. And for us, Africans of all races and ethnicities, to claim victory with these Obamas and celebrate in our own house that which we now celebrate for a house across the ocean.
(africafocus)
It appears that the Chinese car makers SAIC and Dongfeng have plans to acquire the Big 3:
A take-over of a large overseas auto maker would fit perfectly into China’s plans. As reported before, China has realized that its export chances are slim without unfettered access to foreign technology. The brand cachet of Chinese cars abroad is, shall we say, challenged. The Chinese could easily export Made-in-China VWs, Toyotas, Buicks. If their joint venture partner would let them. The solution: Buy the joint venture partner. Especially, when he’s in deep trouble.
At current market valuations (GM is worth less than Mattel) the Chinese government can afford to buy GM with petty cash. Even a hundred billion $ would barely dent China’s more than $2t in currency reserves. For nobody in the world would buying GM and (while they are at it) Chrysler make more sense than for the Chinese. Overlap? What overlap? They would gain instant access to the world’s markets with accepted brands, and proven technology.
All the Shock Doctrine fanatics cheering to drive the the Big 3 into bankruptcy “restructuring” (like Mitt Romney, who can kiss future hopes of electoral victory in Michigan goodbye) might want to think about the implications of this.
Of course the same legislators clamouring for bankruptcy could block the sale. (This assumes they have the fortitude to stare down the Chinese, who currently hold a whopping portion of US debt, and deny them something they really want). But in doing so, and at the same time refusing a bridge loan to the automakers, they are basically legislating the destruction of the Big 3. They will be forcing them to stiff all their creditors and stockholders and tear up their union contracts by refusing to let the “free market” they love to bang on about step in and assume the company’s legitimate debts. Or were all those insufferable lectures about “personal responsibility” when the bankruptcy bill was going through just so much claptrap?
Because selling the company would be far preferable to the Big 3 and those who are dependent on them than Chapter 7. But long-term it would not be without peril for the US. As one FDL commener noted:
With no big three making cars what to stop Toyota and Honda from moving the plants to Mexico where costs are really low. Its only the threat of being shut out of the American market that keeps the Japanese building cars here. If we no longer have cars made in America by American companies we will have no choice but to buy their cars no matter where they are made.
I know long-term thinking isn’t his forte. But as Richard Shelby is salivating at the prospect of yet another BMW SUV plant in his right-to-work state, it might be something for him to consider.
(huffingtonpost)
Lesley Stones
Johannesburg
MTN has sent a team of engineers to China to assess cellphone handsets that can retail for about $10, which it believes is crucial if cellular services are to spread throughout Africa.
Cellphone penetration was highly dependent on cheaper equipment as well as cheaper call fees, and the reliability of the Chinese handsets was no different from the more expensive brand name models, MTN regional vice-president Tim Lowry told the AfricaCom conference in Cape Town this week.
“In markets such as Uganda and Zambia we are able to sell five to six thousand of these phones per week,” he said.
Lowry also wants to source flashier multimedia handsets for about $40 each, and said the first manufacturer to achieve that target would be the winner in Africa.
Telecoms research house Informa predicts that 485-million Africans will be cellphone subscribers by 2013, yet that will still be a penetration rate of only about 38%. Today, many countries have a penetration rate of only about 18%.
Informa’s prediction may prove too modest if operators can slash the cost of their services, the speakers at AfricaCom believe.
Technology developer Qualcomm is using its office in Johannesburg to serve an increasing number of countries in Africa and agrees that low prices are essential for spreading communications across the continent. Qualcomm’s wireless technologies transmit high-speed data and video traffic, and demand for those services is finally beginning to grow, despite about 70% of Africans still not having access to basic voice calls.
Vice-president Jing Wang said there were tremendous growth opportunities in Africa because of the dearth of fixed-line telephony, and because wireless systems were far cheaper to deploy. “We are treating Africa as a high priority.”
Qualcomm licenses its technologies for network infrastructure and handset chip sets to equipment manufacturers such as Ericsson and Alcatel, which sell to operators including MTN, Vodacom and Neotel.
James Munn, vice-president of business development for southern Africa, is now targeting Nigeria, Kenya and Tanzania and also plans to tackle Ethiopia, where only 9-million of its 90-million population have access to cellular services.
Wang said: “We are going to become a more active player in this continent and add resources in the region to work more with the regulators and operators to enable them to provide consumers with better services that are better quality and more affordable.”
He said it was not unrealistic to want to take high-speed data services to rural areas not yet enjoying voice coverage, since the two went hand in hand if the right technologies were used.
“Wireless broadband connectivity is very important for Africa and it’s the most economical and quickest way to bridge the gap,” Wang said.
“We need to work with the vendors to reduce the costs of the infrastructure and handsets so consumers in developing markets can afford these devices and services.”
Michael Joseph, CEO of Kenya’s Safaricom, said: “African operators have to be more innovative and look at data as a way to pump up their revenues.
“We also need to decrease costs, and sharing our infrastructure is one way we will probably all go in the end.”
(allafrica)
The management of NigComSat Limited has appealed to the House of Representatives Commi-ttee on Science and Technology to prevail on the Federal Executive Council (FEC) to approve the utilisation of $500 million (N59 billion) concessionary loan for the construction of NigComSat 2 and 3 advanced series.
The loan, according to the firm, would come from the China Exim Bank.
The appeal follows the final confirmation of the loss of the N40 billion NigComSat-1, as exclusively reported by THISDAY last week.
The two proposed facilities will serve as back-ups to the construction of a NigComSat-1R meant to replace the lost satellite.
Managing Director of the firm, Professor Ahmed Rufai, disclosed this yesterday while briefing members of the House Committee.
Rufai, who said NigComSat-1 had become “irreparably damaged” and therefore flown out of orbit, added that given the importance of the facility, there was need for its urgent replacement and the construction of back-ups.
He also urged the House to assist the Federal Ministry of Science and Technology and NigComSat Limited in convincing FEC to approve the bulk purchase of bandwidth under a Back-Up Services Agreement with an alternative satellite operator who has a satellite as powerful as the collapsed NigComSat-1.
Rufai proposed that in the alternative, the Nigerian government could open discussions with the Chinese government and the satellite manufacturer, the Chinese Great Wall Industry Corporation (CGW-IC), on the reassignment of an emergency satellite with technical specifications similar to NigComSat -1 either in orbit or in advanced stage of manufacture.
According to him, NigComSat remains optimistic on the future and potential of the project despite the temporary setback being experienced in the implementation of the nation’s satellite project.
He said the current experience of the loss of the satellite was neither uncommon nor bizarre in the industry, adding that on the same day NigComSat-1 crashed, a private satellite operator recorded six failures on six satellites.
He debunked claims that the facility failed because of the use of inferior components and the speed at which it was installed during the twilight days of the Obasanjo regime.
The NigComSat boss also allayed fears on the status of the facility in terms of insurance, stressing that NigComSat-1 was fully insured to the tune of 112 million euros by renowned international underwriters with proven integrity and in accordance with industry standards.
Giving some details on the failed satellite, Rufai said the problem was caused by what he described as “solar flare”, an accidental occurrence which cut of the fuel supply linkage with the solar panels and the battery.
“The first incident occurred on April 17th, 2008 when half of the power was lost from the South Solar Array due to a single event offset leaving the North Solar Array as the only source of power,” he told the committee.
“Unfortunately, a similar incident occurred on the Northern Solar Panel Array on the 9th November, 2008 at about 10:34pm Nigerian time during a non-eclipse position. The batteries are only supposed to discharge during eclipse and recharged when in non-eclipse position, while the solar array acts as the source of power to the satellite. This anomally was noticed by NigComSat Ltd engineers on night duty and reported to the satellite manufacturer, China Great Wall Industry Corporation.
“Both teams worked tirelessly for over 24 hours to perform rescue operation on the satellite. Regretfully, all efforts to recover power supply to the power panel failed. The satellite was consequently de-orbited to avoid total loss of power and control which would result in damages to other satellites in orbit or even aircraft in flights. The satellite has now been manoeuvred to the parking orbit and cannot be recovered for use again.”
Meanwhile, the Minister of Science and Technology Chief Grace Ekpiwhre, has held a meeting with senior officials of the Ministry to chart a way forward.
In attendance at the crucial meeting were Rufai and the DG of National Space Research and Development Agency (NASRDA), Prof Robert Boroficce.
Also at the meeting were chief executives of technical departments of the Ministry, including the Minister of State, Dr.Alhassan Bako Zaku, and the Permanent Secretary, Mr. Raymond Ezenwa.
The meeting which lasted over three hours received detailed briefing from chief executives of the corporate agencies concerned – NigComSat and NASRDA.
Officials of CGWIC are expected to arrive the country soon to meet with Nigeria officials to work out both technical and political solution and also get another mission ongoing.
(thisdayonline)
A major boost was given to Nigeria’s quest for foreign investment inflow at the weekend as the country was named the least vulnerable economy in the world, according to a report, Global Economics, compiled by a team of experts from Merrill Lynch.
Merrill Lynch is one of the world’s leading financial management and advisory companies, providing financial advice and investment banking services.
The report, a copy of which was made available to THISDAY at the weekend, was compiled following several data requests from clients of the investment bank for key risk indicators for all major economies including Europe, the Middle East and Africa (EMEA).
According to the statistics, the world’s 10 least vulnerable economies are Nigeria, Mexico, Phili-ppines, Colombia, Egypt, Oman, Indonesia, Peru, China and Russia.
Also, the report identified Australia, Switzerland, Korea, Romania, Hungary, Sweden, Bulgaria, Euro area, United Kingdom and the United States of America as the highest risk economies in the world.
The risk ranking was based on seven indicators and they are - current account financing gap, foreign exchange reser-ves/short-term external debt ratio, private credit-to-Gross Domestic Product (GDP) ratio, and private credit growth, loans to deposits and banks capital-to-assets ratio. Merrill Lynch said the report also addressed all the requests in 62 indicators of the 60 world economies.
According to the report, Nigeria, with a population of 141.41million, was able to record a 7.3 per cent growth in GDP, with its Consumer Price Index hovering at 11.5 per cent, its current account balance, fiscal balance and public debt at 6 per cent, 6.3 and 10.4 percentage respectively.
To determine its external vulnerability, Nigeria’s external debt position was put at 12.9 per cent of the GDP, while external debt /exports ratio was put at 9 per cent. Her forex reserves totalled $60.8billion.
The percentage of Nigeria’s total external debt in relation to the GDP was put at two per cent, total foreign claims is $15.3billion while international claims stood at $13.1billion.
The report stated that the percentage of Current Account Balance plus net Foreign Direct Investment of the Nigerian GDP was 34, Forex reserves/short-term external debt totalled 41, while percentage of export of the GDP was 38 point.
The percentage of private credit of GDP was 43, while the percentage of bank capital to assets, according to Merrill Lynch was 41.
The 10 most vulnerable countries, which are mostly European countries, were said to have exhibited worse balance of payments positions, stretched external debt service ratios and overleveraged financial systems.
“Many of the economies that top our risk ranking have been identified by the National Bureau of Economic Research (NBER) as those that have experienced capital flow bonanzas in the past five years and hence exhibit higher likelihood of economic crisis,” the report explained.
Explaining further on how it put the report together, Merrill Lynch states that: “While we believe that our country risk ranking produces plausible results, one needs to be aware that, as any ranking of that type, it is highly sensitive to the selection of indicators employed. For example, developed countries can probably sustain higher external vulnerability indicators than emerging markets; some Euro area country statistics are possibly misleading given there is a monetary union.”
In their reactions, the leadership of the Nigerian organised private sector said the various investment-friendly programmes put in place especially in the past five years largely gave Nigeria a pride of place in the ranking.
Immediate past Director-General of the Nigerian Economic Summit Group (NESG), Dr. Mansur Ahmed said the latest ranking has confirmed that Nigeria is indeed an investors-haven. The feat, he said, should be traced to a regime of consistent and sustained improvement in the nation’s fiscal management.
Speaking with THISDAY in a telephone interview yesterday, Ahmed acknowledged that Nigeria has been able to maintain a healthy foreign exchange management, low budget deficit and heavily low external indebtedness, which he said have combined to grossly reduce the nation’s level of risk. He said those indices have also endeared the nation’s economy to foreign investors.
However, the incumbent DG of NESG, Mazi Sam Ohuanbuwa said the investment community would not be surprised at the latest ranking by Merrill Lynch.
According to him, the key indicator to the safety of investment in Nigeria is the freedom to invest in any part of the country without government’s intervention.
He maintained that issues like hostile acquisitions, or government take-over is not common in Nigeria, explaining that even in cases where government reversed policies, it is always limited to government investments.
“In Nigeria, people can invest anywhere without hindrance. Other important considerations are the sheer size of the Nigerian market and underlying macro-economic issues,” Ohuanbuwa said.
He noted that although investors in Nigeria are still complaining of high cost of doing business, the level of risk is far lower than what obtains some other economies of the world.
On measures to improve on the latest ranking, the experts were unanimous in their call for the sustenance of investor-friendly policies by the government.
Ahmed emphasised the need for effective management of the nation’s foreign asset especially in the face of the dwindling prices of crude oil at the international market.
Ohuanbuwa charged the government to liberalise the economy by removing all hindrances to the economy.
(thisdayonline)
Nigeria’s government said on Wednesday that its $340 million communications satellite was not lost in space, as reported by the local media, but that it was simply suffering from a flat battery.
The Nigerian Communication Satellite, or NIGCOMSAT-1, blasted off from a launch pad in China in May 2007 to great fanfare, with Nigeria hoping it would offer advanced telecoms, broadcasting and broadband multimedia services for 15 years.
Minister of state for Science and Technology Alhassan Zaku said engineers at ground stations in Abuja and China had noticed the satellite’s solar-powered battery was not recharging and feared it could smash into other satellites if left unrepaired.
“After looking at the options we decided that the best thing to do was to park it, like you park a car,” Zaku said.
“If it wasn’t parked and it lost all its power there would be no energy to even move it … and it would be like a loose cannon and would keep rolling about and hit other satellites in the orbit,” he told reporters.
Nigerian newspapers had reported NIGCOMSAT-1 was missing from orbit.
The satellite was supposed to make Africa’s most populous nation a technological hub, saving broadband users and phone users hundreds of millions of dollars a year and enabling Internet access to remote rural villages.
Critics say the project, estimated to have cost the government 40 billion naira ($340 million), has done little to improve communications, with Internet connections notoriously unreliable and among the most expensive in the region.
Zaku said the satellite was insured and that it would be replaced if it could not be repaired. He said customers had been assured that television, radio and Internet services affected by the problem would be re-routed.
Nigerian Internet users have already been battling with service problems after damage to the South Atlantic Terminal III (SAT-3) underwater cable, the main gateway to the country for international calls and Internet connections.
Nigeria’s formerly state-owned telecoms firm Nitel said last month it had invited foreign firms to help it fix the cable.
(reuters)
The Nigeria Communication Satellite Ltd. refuted Wednesday in Abuja that allegations that NigComsat-1, Africa’s first communication satellite, was missing in orbit, according to the official News Agency of Nigeria.
Ahmed Rufai, managing director of NigComsat Ltd. told the News Agency of Nigeria (NAN) that the satellite was powered down after some technical problems were identified on Sunday night.
He said that the satellite was fully insured against any unforeseen damage, destruction or any problem capable of incapacitating its operations.
“In the event of any destruction, including loss of the satellite, it will be replaced as it is 100 per cent insured,” he said.
The satellite was designed to serve as the strategic backbone for the nation’s communication industry.
It was also meant to provide the much-needed bridge to close the digital divide being experienced by African nations and provide the enabling platform for Africa to be relevant in today’s information age and digital economy.
NIGCOMSAT-1 project was to cover services requirements in the intelligence, security and surveillance sectors.
It was also designed to cover the agriculture, environment, banking, oil and gas, education, telecommunication, Internet services, broadcasting and navigation sectors among others.
Some Nigerian local media quoted unnamed sources as saying on Tuesday that the satellite was “missing” in its launch position in orbit.
(XINHUA)
MORE than 50 million African workers are to be invited to Europe in a far-reaching secretive migration deal, the Daily Express can reveal today.
A controversial taxpayer-funded “job centre” opened in Mali this week is just the first step towards promoting “free movement of people in Africa and the EU”.
Brussels economists claim Britain and other EU states will “need” 56 million immigrant workers between them by 2050 to make up for the “demographic decline” due to falling birth rates and rising death rates across Europe.
The report, by the EU statistical agency Eurostat, warns that vast numbers of migrants could be needed to meet the shortfall in two years if Europe is to have a hope of funding the pension and health needs of its growing elderly population.
It states: “Countries with low fertility rates could require a significant number of immigrants over the coming decades if they want to maintain the existing number of people of working age.
“Having sufficient people of working age is vital for the economy and for tax revenue.”
The report, by French MEP Francoise Castex, calls for immigrants to be given legal rights and access to social welfare provision such as benefits.
Ms Castex said: “It is urgent that member states have a calm approach to immigration. To say ‘yes’, we need immigration … itis not a new development, we must accept it.”
The proposals include the creation of a “blue card” system, based on the American green card, that provides full working and welfare rights.
Blue card holders would be entitled to move freely across the EU, setting up home in any of the 27 member states.
Last night Sir Andrew Green, of MigrationWatchUK said: “England, with Holland, is already the most crowded country in Europe.
“As it is, we have to build the equivalent of seven cities the size of Birmingham over 25 years for the immigrants the Government already expects.
“Yet again the ‘one-size-fits-all’ policy of the EU produces absurd results. These would be ridiculous proposals if they were applied to the Britain.
“The Government must ensure that these work permits are not valid for the UK.
“Higher levels of immigration are the last thing we need with a recession approaching.”
And Shadow Home Secretary Dominic Grieve said: “When ministers are talking tough about efforts to control immigration, they need to provide a clear explanation that national policy is not being undermined through the backdoor in Brussels.”
The UK Independence Party leader Nigel Farage attacked the move as “an outrage”. He said: “The sooner Britain gets back control of immigration policy, the better.”
The proposals – part of the Africa-EU Partnership signed in Portugal last December – also warns of the negative effects of mass immigration and calls for “better integration of African migrants”.
It calls too for a compassionate approach to the eight million illegal immigrants already living in the EU.
It states: “Irregular migrants must not be treated like criminals. Many risk their lives seeking freedom or the means of subsistence in Europe. As long as the EU has a higher standard of living than those countries to its south and east, the temptation to come will exist – especially if there are jobs to be had.”
The declaration calls on the EU to assist African governments to set up migration information centres “to better manage labour mobility between Africa and the EU”.
The first was the job centre opened in Bamako, capital of Mali, on Monday. Other centres are expected to open soon in other west African states and later in north Africa.
Yesterday the Daily Express revealed that, in an apparent contradiction of immigration policy, thousands of migrants – like Kanoute Tieny from Mali – are being given up to £5,500 in grants by the EU to return home to Africa.
French president Nicolas Sarkozy wants to implement an EU-wide immigration plan by the end of the year when he stands down as head of the Council of the European Union.
This body implements policy proposed by the European Commission and discussed by the European Parliament.
French immigration minister Brice Hortefeux has represented all the 27 EU states, including Britain, in a succession of whirlwind tours through west Africa to help create a strategy.
Last night the Home Office said the UK had nothing to do with this EU plan.
A Border Agency spokesperson said the initiative is aimed at promoting legal migration routes in the Schengen area of the EU which the UK opted out of. The area includes most but not all member states.
“We therefore retain full control of our own borders and our asylum system.”
(southafrica-pig)
The Chinese government needs to intervene to ensure that its mining firms behave responsibly at their projects in Africa, according to an expert in the sector.
Martyn Davies, the chief executive officer of the South Africa-based Frontier Advisory Ltd, said at an industry conference that China needs to do as much as it can to ensure that its role in developing the continent’s vast and largely untapped mineral reserves is not affected by political issues both in Africa itself and in the west.
“There are 60 to 70 downstream Chinese smelters in the Democratic Republic of Congo alone that aren’t upholding certain developmental and social standards,” Davies said.
“The Chinese and African governments need to force better operational practices on the ground in those countries.”
China is learning quickly when it comes to Africa, and its efforts to tie long-term commodity and energy deals with social and infrastructural investments on the continent are “rewriting the rules of the global commodity game,” said Davies.
China is expected to become Africa’s second biggest trading partner behind the US by the end of this year, despite having virtually no business at all on the continent only 15 years ago.
Around 80 pct of its total trade with Africa consists of just four commodities, including crude oil, copper, iron ore and cobalt.
China’s growing presence in Africa has drawn criticism from western governments, and the Chinese government has sought to allay the concerns by setting up aid and investment funds, building infrastructure and establishing several “special economic zones” aimed at improving local manufacturing capacity.
The US government has castigated China for failing to play by the rules of the international commodity market. Instead of buying resources on the open market, China has sought long-term purchase or off-take agreements backed by the country’s policy banks and linked to massive investment programs in roads, railways, ports and power stations throughout Africa.
And the scale and speed with which China has strengthened its grip on Africa’s oil and minerals have led critics to suggest that they are taking advantage of institutional and regulatory gaps across the continent.
Furthermore, investments in schools and hospitals in Congo and Gabon could be overshadowed by how private Chinese miners operate in those countries, Davies said.
While Africa is generally very positive about what China is bringing to the continent, Chinese companies need to improve their image, he said.
African suspicions of Chinese mining activities came to a head in 2006, when Zambian opposition leader Michael Sata narrowly lost an election campaign built around local hostility to the activities of Chinese copper firms in the country.
China has subsequently sought to emphasize that its dealings with Africa are based on “mutual benefit”, but accusations of “colonialism” have continued.
“The c-word gets bandied about a lot,” said Davies. “Is China a progressive development partner or does it have a colonialist, exploitative intent? Perhaps we in Africa are more sensitive to this issue.”
He pointed out that despite the concerns about Chinese firms eating up African resources, there were only around 1,000 Chinese enterprises doing business in a continent of 53 nations.
“People are constantly looking for ulterior motives, but the only motive is to look for capital,” he said.
Nevertheless, Chinese companies need to be careful about their corporate practices because “Chinese activities in Africa have been exaggerated and highly politicized,” said Davies.
“This can be countered by good news stories, and developmentally-inclined CSR (corporate and social responsibility) programs.”
(XFN-ASIA )