 | 14 December 2007 Vol 1 - Number 2 | |
| Headlines from the latest issue. Want to see more? Email nadia@africa-confidential.com for a free sample copy | ||
Strategic partnerships India competes with China and the West in the rush for contracts, metals and energy India is upgrading diplomatic, economic and strategic ties with several African states in the search for oil and gas to meet its energy needs, which are expected to double by 2010, in order to sustain its current economic boom. Officials say they intend to build on past support forged during their anti-colonial struggle to strengthen relations with the 53-member African Union and emerging regional organizations by extending credit and by expanding trade and defence links. In exchange, India’s state-owned petroleum major ONGC Videsh Limited has since 2004 secured oil and gas exploration rights in Southern Sudan and Nigeria to add to its concessions in Libya, Algeria and Egypt. India’s Petroleum Ministry, headed by Murli Deora, led the charge to increase the countries exploration and production acreage in Africa at the end of 2007. In early November, India organised its first-ever India-Africa Hydrocarbon Conference, which was attended by 26 African countries and ten ministerial delegations. | AFRICAN MINING India’s WHO'S WHO: | |
| JAPAN-AFRICA Tokyo raises its game Following China’s lead, Japan is courting Africa with summits and finance Tokyo's diplomats and trade officials are promising an upsurge of activity in Africa in 2008, aiming to boost trade and development. Trade Minister Akira Amari speaks unambiguously about the need for Japan to pursue ‘resource diplomacy’ more aggressively. So Japan will source from Africa uranium and some of the rare metals it buys from China. | CHINA-AFRICA Soft power and the glory Cultural partnerships and Confucius institutes show a wider ambition beyond trade and strategic resources When China pledged 20 million renminbi this year for education projects in South Africa to include the teaching of Mandarin in 50 local high schools, it was an indication of an emerging trend in relations between Beijing and Africa. In addition to high-profi le trade deals and development projects, China is increasingly committed to the development of cultural ties with its new partners. | |
| NIGERIA-CHINA Bringing it all back home Asian buyers face tough competition from local bidders as Shell sells a big stake in its oil business China has a new competitor for oil resources in Nigeria, according to company leaks and media reports. Royal Dutch/Shell is understood to be looking to sell a 49.8% stake in Oil Mining Licenses 125 and 134, deepwater blocks operated by Italian company Ente Nazionale Idrocarburi (ENI). Industry sources say Shell have been talking to the China National Offshore Oil Corporation (CNOOC) – and to a local products distribution firm, African Petroleum. Both are reported to be ready to pay over the odds for Shell’s interests. | SUDAN-CHINA Beijing, the rebels' target Threats against Chinese oil installations and peacekeepers are stepping up pressure on Beijing-Khartoum relations Ever since the abduction of two Chinese oil workers by anti- government rebels in Sudan three years ago, policy-makers in Beijing have wrestled with how best to manage strategic assets located in areas of conflict but rights to which depend on a good relationship with government. The 2004 kidnappings were resolved swiftly through the offices of the Red Cross after diplomatic negotiations. China’s position has, however, grown more complex. International attention on the conflict in Darfur in the west of Sudan has increased significantly, as has China's enggagement in the oil sector. | |
| CONGO-KINSHASA-ASIA Another chance for Asia Indian and South Korean companies are joining their Chinese counterparts in the rush for Congo’s resources As well as announcing new deals on mining and infrastructure development, Chinese companies are also moving into Congo’s much depleted agriculture sector. Palm oil is the attraction for Zhongxing Telecom (ZTE), a large Shenzhen-based corporation. In early November, it signed a partnership agreement with Kinshasa’s Minister of Agriculture, François Joseph Nzanga Mobutu, son of former dictator Mobutu Sese Seko | AFRICA-ASIA The great building race China now has the biggest market share of Africa’s fast-growing construction sector as the demand for energy and transport booms Chinese construction companies are sprinting ahead of their Western rivals to secure the biggest state contracts and expand their market share in Africa’s new building boom. By the end of 2007, Chinese companies will have the biggest share of the African construction market by a comfortable margin, according to Western industry estimates. | |