So which is it? Americafrica? Chinafrica? Francoafrique? France has been the old-school colonial influence over Africa's economy. China has poured billions into its Africa economic stake, with special avarice for its resources. Is America now in the game?
U.S. President Obama's recent visit to Ghana cemented widely held warm feelings toward America held by Africans. Many Africans have long seething resentments toward the French. New found resentments toward the Chinese are growing. Witness recently the backlash of the Mourides to the French television's prejudiced portrayal of Senegalese merchants as akin to black gypsies, worse (to the French), black gypsies with religious faith.
Obama's good will is but a further step in the vigorous march of American presidents to Africa. Clinton's drum performance at the Meridian in Dakar was followed by President Bush's successes against AIDS and malaria, as well as aggressive trade initiatives.
But for all that, America's trade with Africa still pales compared to that of France and China. The United State is making no strong plays for natural resources there. We send some Caterpillar tractors, maybe export a few cars, import some clothes. But that's it.
Nor was Obama's visit a foundation for deeper economic connections. Continued foreign aid perhaps. Continued good will for diplomatic partnership. But why, with all the good will, can't the U.S. turn the Africans into Chevy-driving, Ipod-listening Mac users? Lord knows the Africans would want to. Why can't American oil interests build a refinery in Dakar, or craft mining deals?
Showing posts with label trade. Show all posts
Showing posts with label trade. Show all posts
Monday, July 13, 2009
Wednesday, January 28, 2009
Iran to open Dakar trade center
Iran's presence in Senegal is growing, following on the SenIran plant. This in Tehran Times:
"SHIRAZ – The governor general of Iran’s Fars Province, Mohammadreza Rezazadeh and Senegalese Commerce Minister Mamadou Diop signed a memorandum of understanding on late Monday in which Iran agreed to build a trade center in Dakar.
"According to Mehr News Agency, Rezazadeh called Senegal an entrance gate to Africa’s markets.
"He added that during his last visit to Senegal, Shiraz’s private sector successfully formed a trade consortium in the African country that would help promote trade between Senegal and the Iranian province.
"Diop welcomed the promotion of bilateral trade ties, saying that Senegal lacks modern industries and is in need of the latest technology."
"SHIRAZ – The governor general of Iran’s Fars Province, Mohammadreza Rezazadeh and Senegalese Commerce Minister Mamadou Diop signed a memorandum of understanding on late Monday in which Iran agreed to build a trade center in Dakar.
"According to Mehr News Agency, Rezazadeh called Senegal an entrance gate to Africa’s markets.
"He added that during his last visit to Senegal, Shiraz’s private sector successfully formed a trade consortium in the African country that would help promote trade between Senegal and the Iranian province.
"Diop welcomed the promotion of bilateral trade ties, saying that Senegal lacks modern industries and is in need of the latest technology."
Monday, December 15, 2008
Public concern raised regarding "pots of wine" (bribes) in Senegal
An article in today's SudQuotidien expressed public concern over Senegal's drop on the 2008 "corruption index" produced by Transparency International. Although Senegal is not among the most corrupt on the index, its position fell considerably on the 2008 index...
Construction companies and public works of major exporting countries in Senegal "are identified as most likely to pay bribes to the authorities of host countries," according to the 2008 corruption index. One way to understand the increase in "pots-de-vin" (bribes) is the source of bribes. Transparency International also indexed the countries with the companies most likely to offer bribes. The worst, in order, were Russia, China, Mexico and India.
Senegal does significant business with both China and India. China is engaged in major infrastructure projects, especially around Touba. As we have noted before, India's trade with Senegal has skyrocked in the last five years to lead all others.
The solution Transparency International recommends is, naturally, transparency. Major bidding processes and results should be made public. It cited recent mining deals as an example.
The SudQuotidien article calls increasing corruption a "trap." Rightly so. The well known corrolary to the corruption index is the poverty index--the more corruption, the less likely that a country will develop economically.
Construction companies and public works of major exporting countries in Senegal "are identified as most likely to pay bribes to the authorities of host countries," according to the 2008 corruption index. One way to understand the increase in "pots-de-vin" (bribes) is the source of bribes. Transparency International also indexed the countries with the companies most likely to offer bribes. The worst, in order, were Russia, China, Mexico and India.
Senegal does significant business with both China and India. China is engaged in major infrastructure projects, especially around Touba. As we have noted before, India's trade with Senegal has skyrocked in the last five years to lead all others.
The solution Transparency International recommends is, naturally, transparency. Major bidding processes and results should be made public. It cited recent mining deals as an example.
The SudQuotidien article calls increasing corruption a "trap." Rightly so. The well known corrolary to the corruption index is the poverty index--the more corruption, the less likely that a country will develop economically.
Sunday, April 13, 2008
President Wade on Senegal-India trade
Some important excerpts from the speech of President Wade in India, April 8, 2008
"It is much significant to note that trade between India and West Africa have tripled in the 2002-2007 period. That makes India the first partner of Senegal in our exports."
"The bilateral cooperation between India and Senegal is certainly among others an example of what we can achieve based on our complementarities. The Senegalese – Indian partnership covers in fact areas as various as agriculture with our national program of self sufficiency in rice, chemical industries from Senegal’s phosphates, vehicle assembly and the exploitation of iron ore."
"Furthermore the Export Import Bank of India just opened a 2nd office in Dakar after the one in Johannesburg. An institutional frame work like TEAM 9 and its credit line also shows through its concrete achievements the innovating South-south cooperation model India and Africa can develop durably by creating a "value added" compared to classical forms of cooperation."
"It is much significant to note that trade between India and West Africa have tripled in the 2002-2007 period. That makes India the first partner of Senegal in our exports."
"The bilateral cooperation between India and Senegal is certainly among others an example of what we can achieve based on our complementarities. The Senegalese – Indian partnership covers in fact areas as various as agriculture with our national program of self sufficiency in rice, chemical industries from Senegal’s phosphates, vehicle assembly and the exploitation of iron ore."
"Furthermore the Export Import Bank of India just opened a 2nd office in Dakar after the one in Johannesburg. An institutional frame work like TEAM 9 and its credit line also shows through its concrete achievements the innovating South-south cooperation model India and Africa can develop durably by creating a "value added" compared to classical forms of cooperation."
Sunday, March 23, 2008
Massive foreign investment ahead for Senegal?
From the pages of the OTAL shipping line we have this:
"An eight-fold increase in foreign direct investment in Senegal by 2010 through major infrastructure and mining projects could help lift economic growth over 7% a year, according to the IMF. With steel giant Arcelor Mittal planning a $2.2 billion iron ore mine investment and Dubai entrepreneurs pouring money into a new port and economic free zone, the IMF expected foreign investment to rise from 47 billion CFA francs [$106 million] in 2006 to at least 367 billion CFA in 2010.
Alex Segura, IMF representative in Senegal, said the multilateral agency forecast a medium-term growth rate for the poor West African country of 5.5 percent a year, but this could be sharply higher if proposed foreign investments went ahead.
Economic growth dipped to 2% in 2006 due in part to a long break in production at Senegal's struggling state-run phosphates producer ICS -- the country's largest exporter. In a strong endorsement of President Abdoulaye Wade's economic management, the IMF board officially agreed with Senegal a Policy Support Instrument [PSI] with the IMF at the start of this month. It was the first francophone country in Africa to reach such a deal. "
"An eight-fold increase in foreign direct investment in Senegal by 2010 through major infrastructure and mining projects could help lift economic growth over 7% a year, according to the IMF. With steel giant Arcelor Mittal planning a $2.2 billion iron ore mine investment and Dubai entrepreneurs pouring money into a new port and economic free zone, the IMF expected foreign investment to rise from 47 billion CFA francs [$106 million] in 2006 to at least 367 billion CFA in 2010.
Alex Segura, IMF representative in Senegal, said the multilateral agency forecast a medium-term growth rate for the poor West African country of 5.5 percent a year, but this could be sharply higher if proposed foreign investments went ahead.
Economic growth dipped to 2% in 2006 due in part to a long break in production at Senegal's struggling state-run phosphates producer ICS -- the country's largest exporter. In a strong endorsement of President Abdoulaye Wade's economic management, the IMF board officially agreed with Senegal a Policy Support Instrument [PSI] with the IMF at the start of this month. It was the first francophone country in Africa to reach such a deal. "
Saturday, March 22, 2008
We recently came across an interesting summary of the development of Touba and its fascinating connection with global commerce while maintaining its unique character. The link is:
http://llnw.creamermedia.co.za/articles/attachments/01378_africancity.pdf
The article compares three West African cities which exploded over recent decades. Here's one of the insightful excerpts about Touba:
"More than half of all Touba households are described as primarily active in commerce and here imports and a consumer economy tied to the outer world, is especially significant. International remittances account for a huge share of income while the importation and dispersal of industrially produced goods from the whole world have taken over the Senegalese economy, so weak in “internationally competitive” productive activity. Touba makes sense as a town only if one starts to take stock of one major aspect of globalisation—the large-scale temporary or permanent movement of Africans, notably West Africans, to all corners of the globe, together with the decline in productive local activity."
http://llnw.creamermedia.co.za/articles/attachments/01378_africancity.pdf
The article compares three West African cities which exploded over recent decades. Here's one of the insightful excerpts about Touba:
"More than half of all Touba households are described as primarily active in commerce and here imports and a consumer economy tied to the outer world, is especially significant. International remittances account for a huge share of income while the importation and dispersal of industrially produced goods from the whole world have taken over the Senegalese economy, so weak in “internationally competitive” productive activity. Touba makes sense as a town only if one starts to take stock of one major aspect of globalisation—the large-scale temporary or permanent movement of Africans, notably West Africans, to all corners of the globe, together with the decline in productive local activity."
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