Thursday, 01 March 2012 06:32

Newsletter 5

In this newsletter:

  • Chinese companies seeing opportunity in political reshuffling of Egypt
  • The Year of Dragon - yet another booming year for South African – Chinese trade
  • Chinese steel company pours USD 26 million in to Zambia
  • The first direct freighter service between China and Africa set to motion

Chinese companies seeing opportunity in political reshuffling of Egypt

To say that the trade relationship between China and Africa are on a mindboggling rise is to state the obvious. As part of its economic expansion China is now seeing Egypt as a new North African ally with tremendous business partnership potential.

The officials of most of the Chinese companies operating in Egypt are confident in the economy and investment in the future. They say the recent political reshuffle might offer a better chance for increased foreign investment.

"The political change of the Egyptian government is domesticissues that will hardly affect foreign investment," said Han Ruihua, executive manager of Egypt-TEDA Suez Industrial Park.

He added "Egypt has a relatively lower cost of energies such as oil, gas and electricity; its highunemployment rate needs more job opportunities; it is located in the pivotal region amongAfrica, Europe and Asia, its market is enormous; and fundamental industries in this country are in dire need,"

Despite factors that may affect the development of the Egyptian economy, the changes inEgypt are chances for new companies to join the nation's oil market.

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The Year of Dragon - yet another booming year for South African – Chinese trade

China-Africa trade in general is estimated to have increased from $125bn in 2010, to $155bn in 2011, according to Senior Analyst Standard Bank Research Simon Freemantle. In the bank’s research, it is estimated that South Africa’s exports of goods to China will grow even faster than imports this year.
South African – Chinese trade increased by a staggering 77 percent last year when compared to 2010, according to official statistics. China has enjoyed rapid growth manifested by a growing number of foreign delegations and businesses in the mainland in search of ties. In the past year, President Jacob Zuma has also worked strategically to build the relationship with China and argued persuasively for Africa’s inclusion in the BRICS (the acronym coined by Goldman Sachs banker Jim O’Neill in search for the next “big thing.

Despite economic woes facing Europe and other countries, Africa – China trade should remain strong this year – the Chinese Year of the Dragon. But growth is unlikely to be as fast as in the past this year. “We should no longer be obsessed with the speed of growth,” said Lu Zhongyuan, deputy director of the Development Research Center of the State Council, or China’s cabinet. He predicts the expansion of China’s GDP will decelerate to around 8.5 percent in 2012.

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Chinese steel company pours USD 26 million in to Zambia

Good Time Steel Zambia Limited; a Chinese steel giant has invested more than US$26 million in the steel industry of Zambia for an expansion program to manufacture angle iron bars.The investment includes the cost incurred during the procurement of the machinery, setting up of the angle iron plant and the establishment of the window section which has since reached an advanced stage.

Speaking in an interview in Lusaka, Good Time Steel Zambia general manager Jacky Huang said once the section is operational, the firm will cut down the cost of importing angle irons from South Africa and China. Mr Jacky said the angle iron and window section which would be operational in July this year would create 200 more jobs for Zambians and bring the total workforce to 700.

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The first direct freighter service between China and Africa set to motion

Kenya Airways and KLM Royal Dutch Airlines have teamed up to introduce the first direct freighter service between mainland China and Africa, the parties announced this week.

The joint venture between KLM Cargo and Kenya Airways cargo division KQ Cargo would link Kenya’s capital Nairobi to China’s key industrial zone in Guangdong.

The Boeing 747-400F cargo freighter, which was unveiled on Tuesday, would operate the Amsterdam-Guangzhou-Nairobi-Lagos-Nairobi-Amsterdam route, with stopovers in Sharjah in the United Arab Emirates on its way from Guangzhou to Nairobi.

Kenya Airways planned to introduce 12 wholly owned or leased freighters into its growing fleet over the next ten years to improve the airline’s overall cargo carrying capability and reduce overdependence on the passenger fleet whose belly capacity was limited.

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Last modified on Thursday, 01 March 2012 06:43