China on the edge on East Africa resource exploration
Already a strategic region for China due to key trade routes, East Africa is about to become even more important to the world’s second-largest economy. The rapid economic growth seen in the region and the natural resource development potential will likely fuel heightened commercial and diplomatic competition in coming years as more Chinese companies and businessmen enter the region and compete for excellence. Prizes of the region like oil, gas and coal money could, by 2020, be equal to 50% of the current GDP in Mozambique unveiling nothing but the tremendous natural resort deposit the region has to offer.
In as much as Chinese investment and citizens crisscross the vital but volatile area, Beijing is trying enormously to keep the equilibrium between promoting and protecting its people and interests with the local politics.
Chinese companies have two key advantages as they seek assets in East African resources. First, many of them are cash-rich and this in itself makes them desirable partners. Second, they offer secured source of oil, coking coal, liquefied natural gas (LNG) and potash to the giant Chinese market.
2012 marks Gold anniversary for Uganda – China relation
Afro China relation traces its history back to the earlier century. However this long standing relation was strengthen between 1950s’ and 1970s’ when China and Africa had supported each other and worked together. China rendered a lot of support for African countries in their national independence and liberation struggles. In what seemed a quid pro quo Uganda and many African countries supported China in restoring its UN membership and status of UN Security Council in 1971. China cherishes the relations with African countries.
According to a World Bank report, China’s contribution to Africa’s economic growth is 20%. China was one of the first sovereign countries that officially recognized the independence of Uganda 50 years ago. On Oct 09, 1962 Uganda declared its independence and nine days later on Oct 18 China established diplomatic relations with Uganda. Over the past half century, their bilateral relations have been strengthened tremendously.
Especially since the assumption of power of the National Resistance Movement, China and Uganda, based on principles of equality, mutual benefit and mutual respect, have carried out sincere, friendly and productive cooperation.
In 2001 Hu Jintao, then Vice President of P.R.C, visited Uganda. Chinese Premier, Wen Jiabao, visited in 2006, and Foreign minister, Yang Jiechi, put Uganda as one of the first group countries in his trips abroad in 2009.
South Africa – future home for FAW trucks
A Fortune-500 company First Automobile Works (FAW) on Tuesday (Feb 28, 2012) broke a deal ground on its new truck assembly plant in the Coega industrial development zone (IDZ), just outside Port Elizabeth (South Africa), with production scheduled to start at the end of 2013. Officials from FAW signed a deal with IDZ to mark the beginning of construction of the company’s USD 100 million truck and passenger car plant.
It is said that when the plant starts manufacturing on a full scale it will produce 5 000 medium- and heavy-commercial vehicles a year. The Coega plant would not serve as a production base for all of Africa, but only for a number of key markets, such as Angola, said FAW South Africa MD Richard Leiter.
FAW South Africa had been selling trucks in South Africa since 1993, and currently had 18 local dealerships.