Corporate News
UK flexes muscle in scramble for Africa trade deals
Horticultural Crop Development Authority workers sort out and package snow peas: UK has signed a new agreement with three African trading blocs to boost ties. Photo/LIZ MUTHONI
Posted Friday, February 5 2010 at 00:00
Clip wings
The MoU between the UK government and the SADC, EAC and Comesa is, however ,expected to add to ongoing debate about a conference scheduled for March in Tunis to discuss the fast rising Sino-Africa ties.
DfID is the lead sponsor of the Tunis conference that has widely been viewed as one aimed at “clipping” China’s wings in the wake of a shift in which once dominant western countries such as the UK and the US have lost grip of Africa, losing lucrative deals and other trade and investment ventures.
The Sino-Africa trade and investment pacts have grown significantly over the last 10 years driven by a quest by China to find resources to support its vibrant economic and industrial growth.
Latest statistics show that in 2008, total trade between the two blocs was valued at $106.8 billion, up 45.1 percent on 2007.
According to Premier Wen Jiabao, China invested $875 million in Africa in the first nine months of 2009, marking a 77.5 per cent year- on-year growth.
In November 2009, China further pledged $10 billion in low-cost loans to Africa over three years.
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