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Tagged with "Business News"
Brazil Gains Business and Influence as It Offers Aid and Loans in Africa Tags: Business News African News News Mozambique Business Angola
RIO DE JANEIRO — In Mozambique, Brazil’s government is opening a plant making antiretroviral drugs to fight the AIDS epidemic. Brazil is lending $150 million to Kenya to build roads and ease congestion in the capital, Nairobi. And in Angola, West Africa’s rising oil power, a new security agreement seeks to expand the training of Angolan military personnel in Brazil.
 
Brazil, which has more people of African descent than any other country outside of Africa itself, is assertively raising its profile again on the continent, building on historical ties from the time of the Portuguese empire.
 
The array of aid projects and loans recently extended to African countries points both to Brazil’s ambitions of projecting greater influence in the developing world and to the expanding business allure of Africa, where some economies are rapidly growing even as parts of the continent still grapple with wars and famine. The charm offensive is paying off in surging trade flows between Brazil and Africa, growing to $27.6 billion in 2011 from $4.3 billion in 2002.
 
“There’s the growing sense that Africa is Brazil’s frontier,” said Jerry Dávila, a historian at the University of Illinois who has written extensively about Brazil’s inroads across the South Atlantic Ocean. “Brazil is in the privileged position of finally reaching the institutional capacity to do this.”
 
Brazil’s forays into Africa are similar to the ambitions of other rising powers, like Turkey, which has established its sway in the Arab world, and India’s promotion of its culture across Asia.
 
The prominence given to Africa also reflects Brazil’s shift from aid recipient to provider. Big development challenges persist in Brazil, including woeful public schools and a sharp economic slowdown this year. But Brazil is a major agricultural exporter that recently surpassed Britain as the world’s sixth-largest economy, and it now boasts more embassies in Africa than Britain does — a notable change from when Brazil relied on foreign aid in the 1960s, largely from the United States, to alleviate hunger in the country’s impoverished northeast.
 
Africa now accounts for about 55 percent of the disbursements by the Brazilian Cooperation Agency, which oversees aid projects abroad, according to Marco Farani, the agency’s director. Altogether, including educational exchanges and an expanding loan portfolio, Brazil’s foreign aid exceeds $1 billion, he said. Big portions of Brazilian aid also go to countries in Latin America, and there is a smaller focus on East Timor, the former Portuguese colony in Southeast Asia.
 
“We still have a smaller foreign aid profile than other some countries, but we’re learning how to do cooperation,” Mr. Farani said.
 
Brazil still trails other nations, notably China and the United States, which have far more expansive aid programs and trade in Africa. Elsewhere in Latin America, Venezuela and Cuba have offered different ways of enhancing African ties. Venezuela organized a 2009 summit meeting of African and South American leaders, in which President Hugo Chávez tightened an alliance with Libya’s leader at the time, Col. Muammar el-Qaddafi.
 
During the cold war, Cuban troops supported Communist governments in Africa. In Angola, this mission included the seemingly paradoxical task of protecting a Chevron oil complex at the same time the United States was supporting an insurgency against Angola’s leaders. More recently, Cuba has sent thousands of doctors to Africa.
 
But while the Cuban and Venezuelan efforts have largely prioritized developing-world solidarity with some African nations, Brazil’s growing foothold in Africa is more complex, involving ambitions to forge Brazil into a diplomatic and economic powerhouse.
 
After a surge of openings of diplomatic missions over the past decade, Brazil now has 36 embassies across Africa, and hopes to open its 37th in Malawi this year. Brazil is already using this presence to bolster its actions on the world stage, sending jets to fly delegations from Sierra Leone, Liberia and Cape Verde to the United Nations Conference on Sustainable Development, which was held here in June.
 
Other projects are intended to lure Africans to study in Brazil. A new university began offering classes last year for students from Portuguese-speaking countries, including Angola, Guinea-Bissau, Mozambique, and São Tomé and Principe.
 
Since Brazil does not need to import large amounts of oil or food, its plans in Africa differ somewhat from other countries seeking greater influence there. Outreach projects tie largely into efforts to increase opportunities for Brazilian companies, which sometimes work with Brazil’s government in offering aid.
 
Some of Brazil’s biggest inroads, predictably, are in Portuguese-speaking countries like Angola, where the Brazilian construction company Odebrecht ranks among the largest employers, and Mozambique, where the mining giant Vale has begun a $6 billion coal expansion project.
 
But Brazilian companies are also scouring other parts of Africa for opportunities, putting down stakes in Guinea and Nigeria. A leading Brazilian investment bank, BTG Pactual, started a $1 billion fund in May focused on investing in Africa. New links are also emerging, including Brazilian farming ventures in Sudan; a flight from Addis Ababa, Ethiopia’s capital, to São Paulo; and a fiber optic cable connecting northeast Brazil to West Africa.
 
Some of Brazil’s forays in Africa have come with complications, including criticism of warming ties with leaders connected to human rights abuses, like Equatorial Guinea’s president, Teodoro Obiang Nguema Mbasogo. A freedom-of-information measure has enabled journalists to delve into African arms deals by Brazilian companies, including the sale of cluster bombs to Zimbabwe.
 
African students studying in Brazil have filed numerous complaints describing slurs and aggression, complicating the myth of “racial democracy” that once prevailed here, in which scholars contended that Brazil had largely escaped the discrimination common in other societies.
 
 
Source:nyt
Forbes Hails Changes in Africa’s Business Environment Tags: Business News African News News
The vice president of Forbes media says the launch of the Forbes Afrique magazine is a sign of better business possibilities in Africa. Christopher Forbes said his organization is celebrating free enterprise and the entrepreneurial spirit following the official launch of the Forbes Afrique magazine.
 
“We are at a unique moment in time [and] there [are] a lot of exciting things happening in Africa. And also things aren’t going so well in the rest of the world that we can’t keep pointing fingers saying we know best,” Forbes said in Brazzaville.
 
“The moment is right for a magazine like Forbes to be launched here, where we celebrate free enterprise and the entrepreneur spirit because we are seeing that emerge in francophone Africa and in fact throughout Africa.”
 
He said some African countries are becoming less volatile, which he said is a better environment for business development.
 
“There is greater stability here, the rest of the world have realized that we didn’t always get it right doing some of the other things that we’ve done. There are natural resources here, but there is also a change in mindset here,” said Forbes.  
 
 Some analysts say Forbes Afrique could face stiff competition from other French language magazines with deeper roots in the francophone countries of Africa.
 
Forbes magazine has an African English version published in South Africa. But, Mr. Forbes said it was appropriate that French-speaking African countries to have a magazine that addresses business aspects in francophone Africa.
 
 
“French speaking Africa needs the capitalist tool as well,” Forbes said.
 
Officials of the magazine say Forbes Afrique’s readership will include policy makers and business people and everyone whose ambition drives them to reach positions of responsibility in the business world.
 
But Forbes also warned potential investors to make sure they work with reputable businesses in Africa.
 
“Choose your partners carefully,” he said. “We are very lucky in our partner Mr. [Lucien] Ebata.  I think that’s a key thing. Get the best advice and get to know people on the ground.”
 
 “It isn’t [only] that these resources can be useful for the rest of the world, they’ve got to be useful for the people living here [in Africa] as well and being enjoyed by a much broader spectrum of the population.”
 
He said Forbes Afrique magazine is in Africa to stay.
 
“When my grandfather started the [Forbes] magazine in 1917, his very first editorial was that business isn’t about pilling up millions, it’s about creating happiness,” said Forbes. 
 
“As long as this generation of entrepreneurs will increasingly … realize that it’s not just about realizing their visions, but their visions enriching the lives of others;  that is a very important part of real capitalism.”
 
Forbes said the business climate is getting better in African countries, which he said is encouraging to local and international partners looking to invest on the continent.
 
Source: voanews
China Offers Bank Credit, Police Cars to Egypt’s President Tags: Egypt News Business News Northern Africa News
China has made several gestures to Egypt's visiting president to help him boost the ailing Egyptian economy, offering credit to a major Egyptian bank and providing police cars for the country's security forces.

Egyptian President Mohammed Morsi secured the Chinese pledges of support on Tuesday, after arriving in Beijing on his first visit outside the Arab world since taking office in June. Mr. Morsi met with Chinese President Hu Jintao before the two leaders witnessed the signing of several economic agreements.

Under the deals, China will offer of $200 million in credit to the National Bank of Egypt and provide Egyptian police with 300 vehicles. A delegation of 80 Egyptian business leaders also was in Beijing to discuss investment projects with Chinese counterparts.
 
The Egyptian economy has been battered by the global economic slowdown and 18 months of political instability since the February, 2011 popular uprising that toppled longtime autocratic president Hosni Mubarak.
 
Sharp declines in Egypt's tourist arrivals and foreign investment have forced the government to seek billions of dollars in assistance from the International Monetary Fund.
 
Mr. Morsi is seeking to boost Chinese tourism and investment in his country, whose trade with China reached $8.8 billion last year, up 40 percent from 2008.
 
Morsi spokesman Yasser Ali said the two sides also discussed the violence in Syria, with both leaders agreeing that they should work together to “stop the bleeding in Syrian streets” and to oppose foreign military intervention.
 
Mr. Morsi is due to meet with Chinese Premier Wen Jiabao and Vice President Xi Jinping on Wednesday.
 
Source: Chinanews
US-Africa Summit Should Stimulate African Business - Museveni Tags: Afriacn News Business News Museveni
Uganda president Yoweri Museveni has called for a US-African Summit to target the growth of  African consumption market in order to stimulate further the expansion of the American business.

President Museveni was meeting with the visiting American Congressman Senator Tim Wolgurg from the State of Michigan, who called on him at his country home in Rwakitura, Kiruhuura district over the weekend.
 
“Whoever becomes the President of the United States of America, should organize the USA-Africa Summit like America has done with India, China, Europe, among others. It is only the USA-Africa Summit that has not been there”, he said.
 
He said that the African Union Commission President could work with the US to organize the Summit so that America and Africa can discuss issues pertaining to market stimulation and consumption as well as boosting entrepreneurship aspects.
 
President Museveni described the consumer as the first “King” and the entrepreneur the second “King” because the two  are the primary players in business. He noted that all other players in business, including government, are middle player facilitators.
 
The President said that the US should note that the consumption rate in Western economies is going down while the opposite scenario is obtaining in Africa as the continent’s rate of consumption intensifies and expands. He also stressed that Africa has got surplus capacity that needs to be converted into products to supply the world market.
 
Senator Tim Wolburg reported that America’s economy is struggling as exemplified by the fact that the cost of doing business in there is high. He supported President Museveni’s suggestion for the convening of the US-Africa Summit so that trade between USA and Africa is developed further for the mutual benefit of each bloc.
 
He noted investments in Africa have the potential to grow because the continent’s labour force is industrious.
 
Senator Wolburg commended President Museveni for his vanguard role and leadership in fighting against terrorism in the Horn of African country of Somalia. He also lauded the role and the accomplishments of the Uganda People’s Defence Forces (UPDF) in stabilizing and promoting peace in Somalia.
 
Source: Ugandapicks
African Union says Sudan and South Sudan reach deal Tags: African Union Sudan South Sudan Business News Politics
ADDIS ABABA—Sudan and South Sudan have reached a deal on oil payments and will soon discuss when to resume southern oil exports through the north, a mediator from the African Union said on Saturday.
 
Landlocked South Sudan shut down its entire oil production in January after failing to agree with Sudan on how much it should pay to export oil through northern pipelines. Oil is the lifeline of both economies.
 
The rivals came to the brink of a full-scale war in April after border fighting escalated, the worst violence since South Sudan became independent in July last year under a 2005 agreement that ended decades of civil war with Khartoum.
 
The duo’s messy divorce failed to mark the border and how much landlocked South Sudan should pay to export its oil through the north.
 
“It’s an (oil) agreement about all of the matters. The issues that were outstanding were charges for transportation, for processing, transit,” former South African President and AU mediator Thabo Mbeki told reporters.
 
He gave no details, and there was no immediate comment from Sudan and South Sudan, which have been negotiating to end hostilities at the AU in Addis Ababa.
 
The news came as a surprise after the South’s top negotiator, Pagan Amum, had accused Sudan of demanding too high a transit fee. Both delegations had hours earlier broken off talks without a comprehensive deal after a UN Security Council deadline expired.
 
It was not clear how an oil deal would work as Sudan has said it would not agree on oil payments before settling border security issues, the biggest obstacle between the neighbours.
 
Both sides had improved their oil payment offers in the past few days.
 
South Sudan said last week it was willing to pay $9.10 and $7.26 per barrel to export oil through two pipelines crossing Sudan, alongside a $3.2 billion package to compensate for the loss of most oil reserves to the South. It had previously offered $2.6 billion.
 
Sudan itself lowered its demand to $15 a barrel per pipeline, down from $32, according to officials. It had until last week insisted on $36 a barrel.
 
“What will remain (now) . . . is to then discuss the steps as to when the oil companies should be asked to prepare for the resumption of production and export,” Mbeki said of the deal.
 
African Union-mediated talks, led by Mbeki, have long been hampered by differences on where to draw up a demilitarized buffer zone — seen as a first step to ending hostilities.
 
Amum also reiterated calls on Saturday for an arbitration body to resolve a dispute over the position of their shared border.
 
He also accused Khartoum of maintaining a police force in the disputed Abyei border region, despite U.N. requests for a complete pull-out by both sides.
 
Mbeki said talks on their porous frontier had not been finalized, while Sudanese President Omar Hassan al-Bashir and his southern counterpart, Salva Kiir, were scheduled to discuss Abyei next month.
 
“We have informed them (AU) that there has been an agreement between the parties that the matter of the final status of Abyei will be addressed at the next summit meeting of the presidents (Bashir and Kiir),” he said.
 
The AU has requested both sides to resolve the remaining disputes by Sept. 22, Mbeki added
 
On Friday, U.S. Secretary of State Hillary Clinton urged both sides to reach first a deal on oil to end hostilities.
 
Source: Reuters
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