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Published 1st August 2013

Vol 6 (AAC) No 10


Nigeria

Diminishing returns in Beijing



The President returned from his July trip with US$1.1 bn. in loans and promises of new projects – but it’s far less than the $3 bn. his goverment had targeted

President Goodluck Jonathan’s state visit to China delivered much-needed finance for infrastructure projects but the final amount was rather less than his officials had originally envisaged. Ahead of the President’s 8-12 July visit, Finance Minister Ngozi Okonjo-Iweala announced that new financing deals worth US$3 billion were on the table. She elaborated with details of generous interest rates and long repayment periods: under 3% over 15 to 20 years. ‘They want more oil and gas,’ she explained. ‘We have something they want now and they have something we want, so you have grounds for negotiations.’ Upon Jonathan’s return, however, the government announced that the President had signed new loans worth just $1.1 bn. for projects including four airport terminals, roads and a hydroelectric plant. No explanation was offered for the difference.

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How the big projects fell short

The promised deregulation of the refined petroleum market is just one reason for the investment delay

Political and financial concerns have stalled or forced the reformulation of many of the major projects trumpeted since 2008. Back in May 2010, the Nigeria National Petroleum Corpo...


Trade levels rise and rise

New statistics show continued high rates of growth in Asia-Africa trade, as African economies become more entwined with the BRICs

Africa’s trade with Asia’s major economies has gone from strength to strength, as trade with China and India continues to grow much faster than trade with the United St...


Africa and the great Chinese slowdown

As Nigerian exporters have trouble selling crude in the United States because of the fracking revolution and South African economists study movements of China’s yuan for their impact on the rand, Africa’s economies are ever more strongly linked to Asia’s.

As Nigerian exporters have trouble selling crude in the United States because of the fracking revolution and South African economists study movements of China’s yuan for thei...


Clashes but Sime Darby deal goes ahead

Sime Darby's rubber and palm-oil plantation wins backing from community leaders after facing NGO opposition. An attractive rehousing plan may have helped

Despite falling foul of local communities and environmentalists, in late June Malaysian palm oil giant Sime Darby finally won approval to cultivate rubber and palm oil on 5,000 hec...


The attractions of coal and gas

On her first state visit to Africa, Prime Minister Yingluck Shinawatra pledged an $8 billion investment in Mozambican port and rail projects

Thailand’s Prime Minister Yingluck Shinawatra embarked on her maiden state visit to Africa in late July. Her first stop was Mozambique, where on 1 August she promised to make...


Deals miss election deadline

The IMF sounded alarm bells over the sidelining of Finance Minister Coulibaly in late June after he opposed several rushed deals with Beijing

Uncertainty hangs over three controversial deals with China that President Dioncounda Traoré’s outgoing transitional government had hoped to conclude before the first ...


Intervention for the non-interventionists

They will not be involved in combat but Chinese troops will be joining the new peacekeeping force in Mali

China is sending troops to the new United Nations peacekeeping mission in Mali. The Ministry of Foreign Affairs announced in late June that it would dispatch its largest single co...



Pointers

Meng Jianzhu

Secretary, Central Politics and Law Commission, CPC, China

With more Chinese nationals and businessmen in Africa than ever before, the Beijing government has much to do when it comes to protecting its citizens. After a wave of attacks targ...


Subhanu Saxena

Chief Executive Officer, Cipla, India

Africa is a major market for the pharmaceuticals industry, especially with regard to antiretroviral and antimalarial medicines, and India’s Cipla aims to grab a big share of ...


Kang Chang-hee

Speaker, National Assembly, South Korea

National Assembly Speaker Kang Chang-hee made his first trip to Africa in July and spent 13 days in Ethiopia, Kenya and Tanzania. In Dar es Salaam, the government of President Jaka...