China and Africa Attempting to Strengthen Ties

Sharm el Sheikh, Egypt, November 8, 2009 (Alternative Energy Africa)… “China’s involvement in Africa is sincere with no strings attached – it isn’t political,” echoed China’s Premier Wen Jiabao at the 3rd Conference of African and Chinese Entrepreneurs held in Sharm el Sheikh, Egypt from November 7-8. Representatives from the governmental sector as well as various industries were present in order to further build upon African/Chinese relations.

 

Speakers included Uganda’s Minister of State for Investment Aston Kajara; Hu Zhirong, the Vice President of the China-Africa Development Fund; the CEO of South Africa-based Standard Bank Craig Bond; and many more. President of ZTE Corp. Hou Weigui stressed that in order for a successful collaboration between ZTE and African businesses, products must be tailored to meet the individual needs of African companies. “We want to jointly develop [businesses] with Africa,” Weigui said.

 

Kajara emphasized in his speech the importance of renewable energy for Africa, but also the RE potential compared to such superpowers like the US. A representative from Zambia told Alternative Energy Africa that while Africa has the most potential, getting investment is the hardest task – especially for Zambia. He went on to say that although many businesses in Zambia have tried to attain funding from organizations such as the World Bank, USAID, and the African Development Fund, each avenue is met with the same response, “Zambia’s investor climate is simply too risky.” He added that for the southern African region, money bypasses other nations within the area and is invested in South Africa.

 

Kajara said, “There’s room for improvement in relations with China and Africa through certain projects like trade and [China] should seize this great business opportunity.”

 

Standard Bank’s CEO gave some advice to Chinese and African investors alike, “To African businessmen, please understand that dealing and doing business with China isn’t difficult, just make sure you understand what your partner wants. To the Chinese, you need to have advisors on the ground to understand the culture and most importantly, help manage risks of Africa.”

 

Meetings were scheduled November 8 for African and Chinese professionals to discuss avenues of cooperation; however, many complaints were circulating at the absence of most Chinese companies.

 

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