Fixing Kinshasa's broken boulevards
Agreed in November 2009, the second phase of infrastructure deals associated with the Sicomines joint venture is worth...
RITES not right
The Rail India Technical and Economic Services buyout of 51% of Tanzania’s national railway company is set to collapse ...
BLUE NOTES
The new stand-off between Beijing and Washington could take Africa back to the Cold War era of rival superpowers. Last month, China’s People’s Daily described the USA’s sale of US$6.4 billion of arms to Taiwan as ‘Cold War thinking’. This follows spats such as the trade in chicken feet and car tyres, mysterious hackers into Google mail and the failure of the climate change talks in Copenhagen. Beijing sent a deputy foreign minister to negotiate with President Obama on environmental rules last December. China’s argument was simple: the US (and Europe) should not lecture developing countries on the need to cut carbon emissions. Underlying the fractiousness are simple economics: China’s yuan has stayed at the same value since mid-2008, and is reckoned to be undervalued by 25-40%. This racks up the US deficit and unemployment. China and the US are edging towards a trade war, which could push the global economy back into recession – a disaster for Africa that would offset any slight gain in the terms of trade. Africa’s autocrats would welcome a diplomatic war in the G-2: Beijing has been making supportive noises towards President Omer el Beshir, weeks ahead of Sudan’s critical elections while Sinophile President Robert Mugabe looks on with renewed hope.
Untoward Indian tillers
A US$40 million concessionary loan from the Indian government is mired in delays, a legal review and accusations of corruption. Moreover, the mix of army-owned enterprises, tied aid and squabbling agents around the deal is raising eyebrows in diplomatic and business circles. The loan, managed by the Export-Import Bank of India, is for the purchase of power tillers (walking tractors). Specifically, it is for Indian power tillers, as 85% of the loan is tied to Indian goods and services.
Asian national minnows
Smaller Asian energy companies are intensifying their exploration and production efforts in Africa, following in the wake of the Indian and Chinese oil and gas giants. Pakistani, Thai and Vietnamese companies are joining those from Taiwan, Malaysia and South Korea, especially in the exploration and production sector.
Tullow takes Lake Albert
In February, after months of political jockeying, Tullow gained control of all of the oil under Lake Albert, allowing it to bring in its preferred partner, the China National Offshore Oil Corporation. Beijing’s oil companies have won another diplomatic and commercial victory over the interests of Western oil majors.
Beijing's builders are back
The on-again off-again plan to renovate the railway linking coastal Lagos to Kano in the north may formally start up this year, but questions about the validity of any contract signed between the Chinese companies and the Nigerian government remain until the current political crisis is solved. The plan for the China Civil Engineering Construction Corporation to connect Nigeria’s two most populous cities and main commercial centres is criticised for its vastly inflated cost and has so far resulted in more controversy than actual work.
Anti-Asian strength in numbers
There is a long way to go before the 2011 national polls, but the current political jockeying in Zambia would give any visitor the impression that the election is to be held next week. The battle for the presidency is between incumbent President Rupiah Banda and the main opposition leader Michael Sata, who heads the Patriotic Front. President Banda is due to make a state visit to China this month.
BLUE NOTES
The new stand-off between Beijing and Washington could take Africa back to the Cold War era of rival superpowers. Last month, China’s People’s Daily described the USA’s sale of US$6.4 billion of arms to Taiwan as ‘Cold War th...
China Union’s clouds have iron linings
More than a year and two amendments later, progress is finally being made on little-known China Union’s US$2.68 billion deal to redevelop Liberia’s Bong Mines. In her apologetic New Year address, President Ellen Johnson-Sirleaf announced that a second amendment to the China Union deal would soon be submitted for ratification by the legislature.
E-MAIL ALERTS
Sign up to receive fortnightly email alerts listing the latest headlines, with extra news and commentaries from Africa-Asia Confidential's Editor, Patrick Smith.
SUBSCRIBE
Become a subscriber today to read our articles in full.
- Find out more
- Already have a print subscription? Click here
Africa-Asia Confidential Wallchart 2010
Register here for the Africa-Asia Confidential Wallchart 2010, which maps relations and trade statistics between the two continents.
Issue archive
Search our online archive
Alternatively, contact us to find out about access to the world's best monthly newsletter on African and Asian politics.
Looking for a specific issue of Africa-Asia Confidential?
order a free sample copy
Request a printed example of our monthly Africa-Asia Confidential newsletter
confidentially speaking
The Africa Confidential blog