Is Germany sending Mercenaries to Somali?

Somali Warlord Hires German Mercenaries to Provide Security Services.

Politicians have reacted angrily to reports that a German firm has signed a deal with a Somali warlord to provide security services. Former members of German special forces and an elite police unit could soon be working as bodyguards and trainers in the lawless country.

For years, German politicians and pundits have been taking the moral high ground over the activities of the American private security contractor Blackwater, now known as Xe Services, in places such as Iraq. "The US government has allowed private security firms to develop into an omnipresent, uncontrollable apparatus in the war zones of this world," wrote one German newspaper back in 2007.

That moral outrage is now looking distinctly shabby in the light of revelations that a German security company is planning to supply mercenaries to a Somali warlord. On Monday, Thomas Kaltegärtner, CEO of Asgaard German Security Group, confirmed a report by the German public broadcaster ARD that his company plans to send former German soldiers to Somalia.

In a December 2009 press release, Asgaard announced it had signed an "exclusive agreement on security services" with Abdinur Ahmed Darman. Darman, a Somali warlord who styles himself as the country's president, does not recognize the legitimacy of the United Nations-backed transitional government of Somali President Sheikh Sharif Sheikh Ahmed. The agreement, the company said, would cover "all necessary measures to reintroduce security and peace to Somalia." The country has not had a functioning central government since 1991.

According to Kaltegärtner, himself a former Bundeswehr soldier, Asgaard employees would provide security for Darman and train police and military forces. He stressed, however, that combat operations were not planned. He said that over 100 mercenaries could be involved in operations. Although negotiations were not yet complete, it was possible that Asgaard employees would be operating in Somalia in the near future, Kaltegärtner told Berlin's Tagesspiegel newspaper. Kaltegärtner also told the newspaper that his company employed former members of the German army's special forces, the KSK, and Germany's elite GSG-9 police force.

Privatizing State Violence

Several German politicians have reacted angrily to the news that former soldiers could soon be in action on the Horn of Africa. "In my opinion, this is not acceptable," Rainer Arnold, the defense expert of the center-left Social Democrats, told the Tuesday edition of the Frankfurter Rundschau newspaper. He called for new legislation to "clearly limit" such operations, adding: "One cannot privatize state violence."

Speaking to the same newspaper, Green Party politician Omid Nouripour accused the German government of not doing enough in the past to regulate private security firms. Paul Schäfer of the far-left Left Party and Rainer Stinner of the liberal Free Democratic Party, which governs in coalition with Merkel's conservatives, also criticized the deal, with Schäfer talking of a "shadow foreign policy."

Observers warn that German employees of the firm could be killed or targeted for kidnapping in Somalia. The Islamist Al-Shabab militia, which controls several regions of the country and parts of the capital Mogadishu, has allied itself with Al-Qaida, which wants Germany to withdraw its troops from Afghanistan. The Islamist groups would be pleased to get their hands on German hostages, experts say.

"If a German firm were to train and support a Somali militia, that would certainly go against Germany's interests," said Annette Weber from the German Institute for International and Security Affairs (SWP) in remarks to ARD. The German Foreign Ministry and Defense Ministry now want to look into what Asgaard is planning to do in Somalia, according to the Süddeutsche Zeitung.

The company itself tried to play down the significance of the operation. "We want to work closely together with the German government and will in no way act against its interests," Asgaard said in a statement published on its website on Sunday. "There are currently no German citizens working on behalf of Asgaard in Somalia." The company stressed that it would only begin its operations in Somalia once Darman "once again assumes control of state affairs with the approval of the UN."

While Darman isn't considered an Islamist -- he is living in the United States and enjoys good contacts to U.S. congressmen -- his chances of becoming the next president are slim. His support inside the country is limited, and officials in Germany have warned that he may not get the personnel support from Europe.
A German prosecutor Wednesday launched an investigation into whether deploying the mercenaries to Somalia would be in violation of a German law that bars the sale of services of German soldiers abroad. A Justice Ministry spokesman Wednesday said the deal could also violate an international arms embargo imposed on Somalia by the United Nations.
Meanwhile, security experts aren't thrilled by the prospect of former German troops in a country like Somalia, where some 1.5 million people have been displaced by domestic fighting. The

For years, German politicians criticized the activities of U.S. private security contractor Blackwater, now Xe Services, in conflict zones such as Iraq. "The U.S. government has allowed private security firms to develop into an omnipresent, uncontrollable apparatus in the war zones of this world," the left-leaning Die Tageszeitung newspaper wrote in 2007.

Sub-Saharan Africa one of the world's most religious places.

A new Pew Forum poll is out and finds that Sub-Sahara is one of the most religious regions of the world.

A continent that was more known for tribal shamans than for steeples and minarets has, in just 110 years, become one of the world's most religiously devout regions, according to the Pew Forum.

A new massive survey, "Tolerance and Tension: Islam and Christianity in Sub-Saharan Africa," released Thursday, charts how a region that gave birth to the term "global South" is now in the driver's seat in terms of world religious practice.

Twenty percent of the world's Christians now live south of the Sahara Desert and 15 percent of the world's Muslims live there. It's one of the world's most religious places, with at least 85 percent of the population in most countries saying religion is very important to them.

The picture was quite different in 1900, when animist religions comprised the bulk of the population while Muslims and Christians combined made up less than one-quarter.

Animists and traditional African religions have plummeted since then to about 13 percent of the population while conversion rates of Muslims and Christians have soared. Muslim adherents have gone from 11 million in 1900 to 234 million in 2010; Christians have gone from 7 million to 470 million.

Northern Africa is heavily Muslim and southern Africa is mostly Christian but where the two religions meet in a 4,000-mile belt from Somalia to Senegal has often turned violent, especially in Nigeria and Rwanda.

At least 45 percent of the Christians surveyed in Ghana, Zambia, Mozambique, Cameroon, Kenya, Uganda and Chad — which topped the list at 70 percent — consider Muslims to be violent.

Far smaller percentages of Muslims see Christians as violent — Djibouti had the largest percentage at 40 percent, followed by Kenya and Uganda in the low 30s.

From December 2008 to April 2009, the Pew Research Center's Forum on Religion and Public Life conducted 25,000 interviews in more than 60 languages or dialects in 19 countries to ascertain the state of belief and practice among 820 million people in one of the world's most religiously volatile regions.

They found a group of people with heavily pentecostal and messianic beliefs, in both religions. More than half of the Christians surveyed believe Jesus Christ will return to rule the Earth in their lifetimes. More than half of the Christians surveyed believe in the "prosperity gospel," that God will give health and wealth to people if they have enough faith.

Similar attitudes were common among Africa's Muslims: About one-third said they expect the restoration of the caliphate — worldwide Islamic rule — in their lifetimes.

More than half of the Muslims surveyed said society as a whole — not individual women — should decide on whether to wear the veil.

Although Muslims often get blamed for allowing female "circumcision," which is the mutilating of female genitals, the practice is more common among Christians than Muslims in Uganda and Nigeria. However, the highest rates of female circumcision are in the majority Muslim countries of Mali and Djibouti.

And sizable minorities cling to aspects of African religion. More than half the people surveyed in Mali, Tanzania, Senegal and South Africa believed that sacrifices to spirits will protect them from harm. One-quarter of the Muslims and Christians surveyed in several countries said they believed in the power of charms or amulets to protect them.

With most of the populations adhering to one or the other religion, chances are, surveyors said, that neither religion will keep up its current growth rates as the pool of potential converts has shrunk. Neither religion seems to be converting members of the opposing religion in great numbers, they said, with the exception of Uganda where 32 percent of the respondents who were raised Muslim now say they are Christian.

Two wonderful coping religions expanding in a part of the world that's being integrated into globalization at a stunning pace right now--no coincidence, that. One knows how to handle abundance, the other does not.

Whats the status of Democracy in Africa?

Map comes from Freedom House 2010.  Legend is green for free, purple for unfree and yellow for partly free.

Subject is Cato Institute report on state of liberal democracy in Africa by Tony Leon.

Gist:  Economic reforms are what will drive the emergence of liberal democracies on the continent.  Why?  All liberal democracies are also market-oriented economies.

Recent positive trends include (from Daniel Posner and Daniel Young, UCLA):

• Democracy is increasingly seen as only legit form of government in Africa (What?  No Beijing Consensus?)


• Elections are now the norm, not the exception


• Elections are now increasingly contested, often vigorously


• Lifetime rule is disappearing (since 2000 we see longtime leaders gone in Malawi, Ghana, Kenya, Nigeria and ten others).


• Of the 18 presidents who bumped up against two-term limits in recent years, not one went extra-constitutional, 9 stepped down, three tried and failed to change constitution, and the six who were successful all got their 3rd terms.

Still, the report concludes, "presidential power remains a key impediment to democratic deepening."

Best short-term fix:  governments eliminate current restrictions on media.

No mention of China's impact, but I come away from the piece more optimistic about Africa's future.

Asia's demand triggers frontier integration in Africa via mining companies

Financial Times reports:

Six of the world’s biggest mining and steel companies have converged on an unprecedented scale on a mineral-rich corner of west Africa beset until recently by civil war.



The companies plan to spend billions of dollars in Guinea, Liberia and Sierra Leone, where some of the world’s richest deposits of iron ore, the raw ingredient of steel, are found.

The groups are Vale, the Brazilian iron ore miner, Rio Tinto and BHP Billiton, the Anglo-Australian mining houses, ArcelorMittal, the UK steel company, Russia’s Severstal, and Chinalco, the state-owned Chinese mining company.

Buoyant demand for steel has lifted iron ore prices, intensifying global competition for Africa’s hitherto little exploited deposits, and pushing companies into increasingly risky territory.

Liberia and Sierra Leone emerged only recently from civil wars, while Guinea has been teetering on the brink of conflict since the death of dictator Lansana Conte prompted a military coup in 2008.

As yet there is little infrastructure to facilitate mineral exports from any of these countries, whose governments want to use the multinational corporations to fund the ports, roads, and railways needed to lift their struggling economies.

Last month, Vale agreed to spend between $5bn-$8bn on building mines, ports, and railways in Guinea and Liberia by 2020. By comparison, the gross domestic product of Liberia is under $1bn (€800m, £700m).

Vale entered the region by paying Beny Steinmetz Group (BSG), a mini-conglomerate associated with the Israeli billionaire, $2.5bn for exploration rights in Guinea’s Simandou mountains.

BSG’s claim is controversial, as Rio Tinto still disputes the Guinean government’s decision in 2008 to remove half of its Simandou exploration rights.

Teams from both Vale and BSG are in Monrovia, Liberia’s capital, to negotiate details of the infrastructure deal with the country’s government. The idea is to transport the iron ore mined in Guinea through Liberia to a new export facility on the coast.

Marc Struik, head of mining at BSG, told the Financial Times the Vale-BSG joint venture wanted to build a new port at Didia in Liberia. That could cost $1bn, Mr Struik estimated.

The joint venture, he said, could spend more than $5bn on ancillary infrastructure to run the Simandou mines in Guinea. This would include two railway lines. The first would reconstruct a line through Guinea for passenger use. The second would be a new line to carry iron ore through Liberia to Didia.

The venture hoped to finalise the plan by the end of June, BSG said. It has signed only a memorandum of understanding with Liberia, which potentially stands to gain as much as Guinea from ore exports.

“We have come with a proposal that no one else has matched,” said Mr Struik. “Liberia is not going to stop the infrastructure development agreement.”

But recent history has shown such agreements to be fragile. Rio Tinto has not acknowledged that it has lost the title to the northern block of Simandou, which Vale now controls.

Rio still holds exploration rights in the southern Simandou block, where most of the region’s known reserves of iron ore are found.

In March, Rio brought in Chinalco, China’s state champion, in a joint venture to develop Simandou. Chinalco has ties to Chinese infrastructure contractors that could be key to developing the southern Simandou block – or more.

But no one is jumping to conclusions about the outcome. Elections are coming up in Guinea. Vale’s deal was signed by the interim government, installed after the former military leader was shot. Guinea’s unions and some opposition politicians say no new deals should have been made in the transitional period.

Done well, this can be a big boost to local economic development.  The hoped-for key difference with the past is the sustained, boom-like demand from Asia, which constitutes a socio-economic revolution all its own for Africa.

Israel offered to sell nuclear warheads to South Africa

[caption id="" align="aligncenter" width="460" caption="The secret military agreement signed by Shimon Peres, now president of Israel, and P W Botha of South Africa."][/caption]

Britain’s Guardian newspaper said it has proof that Israel had offered to sell nuclear warheads to South Africa in 1975. Documents uncovered by an American academic researching Israel’s ties with South Africa’s then-white minority government claims that Israeli President Shimon Peres, then defense minister, had offered the warheads “in three sizes”.

Secret South African documents reveal that Israel offered to sell nuclear warheads to the apartheid regime, providing the first official documentary evidence of the state's possession of nuclear weapons.

The "top secret" minutes of meetings between senior officials from the two countries in 1975 show that South Africa's defence minister, PW Botha, asked for the warheads and Shimon Peres, then Israel's defence minister and now its president, responded by offering them "in three sizes". The two men also signed a broad-ranging agreement governing military ties between the two countries that included a clause declaring that "the very existence of this agreement" was to remain secret.

The documents, uncovered by an American academic, Sasha Polakow-Suransky, in research for a book on the close relationship between the two countries, provide evidence that Israel has nuclear weapons despite its policy of "ambiguity" in neither confirming nor denying their existence.

The Israeli authorities tried to stop South Africa's post-apartheid government declassifying the documents at Polakow-Suransky's request and the revelations will be an embarrassment, particularly as this week's nuclear non-proliferation talks in New York focus on the Middle East.

They will also undermine Israel's attempts to suggest that, if it has nuclear weapons, it is a "responsible" power that would not misuse them, whereas countries such as Iran cannot be trusted.

A spokeswoman for Peres today said the report was baseless and there were "never any negotiations" between the two countries. She did not comment on the authenticity of the documents.

South African documents show that the apartheid-era military wanted the missiles as a deterrent and for potential strikes against neighbouring states.

The documents show both sides met on 31 March 1975. Polakow-Suransky writes in his book published in the US this week, The Unspoken Alliance: Israel's secret alliance with apartheid South Africa. At the talks Israeli officials "formally offered to sell South Africa some of the nuclear-capable Jericho missiles in its arsenal".

Among those attending the meeting was the South African military chief of staff, Lieutenant General RF Armstrong. He immediately drew up a memo in which he laid out the benefits of South Africa obtaining the Jericho missiles but only if they were fitted with nuclear weapons.

The memo, marked "top secret" and dated the same day as the meeting with the Israelis, has previously been revealed but its context was not fully understood because it was not known to be directly linked to the Israeli offer on the same day and that it was the basis for a direct request to Israel. In it, Armstrong writes: "In considering the merits of a weapon system such as the one being offered, certain assumptions have been made: a) That the missiles will be armed with nuclear warheads manufactured in RSA (Republic of South Africa) or acquired elsewhere."

But South Africa was years from being able to build atomic weapons. A little more than two months later, on 4 June, Peres and Botha met in Zurich. By then the Jericho project had the codename Chalet.

The top secret minutes of the meeting record that: "Minister Botha expressed interest in a limited number of units of Chalet subject to the correct payload being available." The document then records: "Minister Peres said the correct payload was available in three sizes. Minister Botha expressed his appreciation and said that he would ask for advice." The "three sizes" are believed to refer to the conventional, chemical and nuclear weapons.

The use of a euphemism, the "correct payload", reflects Israeli sensitivity over the nuclear issue and would not have been used had it been referring to conventional weapons. It can also only have meant nuclear warheads as Armstrong's memorandum makes clear South Africa was interested in the Jericho missiles solely as a means of delivering nuclear weapons.

In addition, the only payload the South Africans would have needed to obtain from Israel was nuclear. The South Africans were capable of putting together other warheads.

Botha did not go ahead with the deal in part because of the cost. In addition, any deal would have to have had final approval by Israel's prime minister and it is uncertain it would have been forthcoming.

South Africa eventually built its own nuclear bombs, albeit possibly with Israeli assistance. But the collaboration on military technology only grew over the following years. South Africa also provided much of the yellowcake uranium that Israel required to develop its weapons.

The documents confirm accounts by a former South African naval commander, Dieter Gerhardt – jailed in 1983 for spying for the Soviet Union. After his release with the collapse of apartheid, Gerhardt said there was an agreement between Israel and South Africa called Chalet which involved an offer by the Jewish state to arm eight Jericho missiles with "special warheads". Gerhardt said these were atomic bombs. But until now there has been no documentary evidence of the offer.

Some weeks before Peres made his offer of nuclear warheads to Botha, the two defence ministers signed a covert agreement governing the military alliance known as Secment. It was so secret that it included a denial of its own existence: "It is hereby expressly agreed that the very existence of this agreement... shall be secret and shall not be disclosed by either party".

The agreement also said that neither party could unilaterally renounce it.

The existence of Israel's nuclear weapons programme was revealed by Mordechai Vanunu to the Sunday Times in 1986. He provided photographs taken inside the Dimona nuclear site and gave detailed descriptions of the processes involved in producing part of the nuclear material but provided no written documentation.

Documents seized by Iranian students from the US embassy in Tehran after the 1979 revolution revealed the Shah expressed an interest to Israel in developing nuclear arms. But the South African documents offer confirmation Israel was in a position to arm Jericho missiles with nuclear warheads.

Israel pressured the present South African government not to declassify documents obtained by Polakow-Suransky. "The Israeli defence ministry tried to block my access to the Secment agreement on the grounds it was sensitive material, especially the signature and the date," he said. "The South Africans didn't seem to care; they blacked out a few lines and handed it over to me. The ANC government is not so worried about protecting the dirty laundry of the apartheid regime's old allies."

Peres on Monday categorically denied the report.

Israeli President Shimon Peres on Monday categorically denied a report that he offered nuclear warheads to South Africa in 1975, when he was defense minister.The report published Sunday in the British newspaper The Guardian is based on an American academic's research and claims to cite secret minutes of a meeting Peres held with senior South African officials.

Peres said Israel never negotiated the transfer of nuclear weapons to South Africa.

"There exists no basis in reality for the claims published this morning by The Guardian that in 1975 Israel negotiated with South Africa the exchange of nuclear weapons," the president said in an English-language statement. "Unfortunately, The Guardian elected to write its piece based on the selective interpretation of South African documents and not on concrete facts."

The article is based on a series of documents the South African government declassified in response to a request from American academic Sasha Polakow-Suransky, who is writing a book called "The Unspoken Alliance" about the close relationship between the Israel and South Africa.

Appearing alongside the article, the partially censored documents show a formal request from the South Africans for nuclear-capable warheads, and minutes of meetings in which then-Defense Minister Peres listed weapons available for sale.

But they do not appear to confirm any transfer of weapons, or any explicit offer from the Israelis to sell nuclear materials or nuclear-capable weapons to the South Africans.

The documents accompanying the story do show Peres' signature on minutes from a meeting where the then-defense minister discussed payloads available in "three sizes," one of several phrases that Peres said The Guardian misconstrued.

In response to the article, the South African government said it has dismantled all its nuclear weapons but did not relate to the 1975 claim.

The British paper did not call the Israeli government for a response to the article, Peres said, adding that his office "intends to send a harsh letter to the editor of The Guardian and demands the publication of the true facts."

The Guardian claims the documents offer the first documentary evidence of Israel's nuclear program.

In 1986, another British newspaper, the Sunday Times, published pictures and descriptions from a former technician at Israel's main nuclear reactor, leading experts to estimate that Israel had the world's sixth-largest nuclear arsenal.

According to its policy, Israel has never acknowledged or denied possessing nuclear weapons, though it is widely assumed to have them.

The "top secret" minutes of meetings between senior officials from the two countries in 1975 show that South Africa's defence minister, PW Botha, asked for the warheads and Shimon Peres, then Israel's defence minister and now its president, responded by offering them "in three sizes". The two men also signed a broad-ranging agreement governing military ties between the two countries that included a clause declaring that "the very existence of this agreement" was to remain secret.

The documents, uncovered by an American academic, Sasha Polakow-Suransky, in research for a book on the close relationship between the two countries, provide evidence that Israel has nuclear weapons despite its policy of "ambiguity" in neither confirming nor denying their existence.

The Israeli authorities tried to stop South Africa's post-apartheid government declassifying the documents at Polakow-Suransky's request and the revelations will be an embarrassment, particularly as this week's nuclear non-proliferation talks in New York focus on the Middle East.

Chinese military in equipment in Angola

[caption id="" align="aligncenter" width="399" caption="Angolan soldiers parade on the national day 11 November, 2005 in Luanda marking the 30th anniversary of independence from Portugal. Angola is considering asking the Chinese army and Chinese weapons companies for help in modernising its military, the chief of staff of the Angolan Armed Forces said Friday.… Read more »"][/caption]

Angola is thinking over buying military equipment from China. Not news per se......

LUANDA — Angola is considering asking the Chinese army and Chinese weapons companies for help in modernising its military, the chief of staff of the Angolan Armed Forces said Friday.

"Studies are under way into the re-equipping and the modernisation of our forces, with a view toward cooperation with the armed forces... and the defence industry in China," Francisco Furtado said on national radio after meeting with his Chinese counterpart Chen Bingde.

Chen was on his first visit to Angola to give about one million dollars (805,000 euros) worth of computer equipment to Luanda, and to discuss consolidating bilateral cooperation deals signed in 2008.

China is heavily involved in Angola's reconstruction after 27 years of civil war that ended in 2002.

The southern African country has already received at least five billion dollars in credit from Beijing -- repaid in oil -- but the World Bank believes up to eight billion dollars more has not been publicised.

US trains Mali and Senegal Special forces

With its ever increasing African partnership, the US, Senegal and Mali kicked off their first special forces training mission in Mali.

Malian and Senegalese soldiers worked with their counterparts from the Special Operations Task Force (SOF) - 103, taking part in classes on small unit tactics, movements, and convoy vehicle recover drills, May 11, 2010 in Bamako.

The classes were part of Flintlock 10, an exercise focused on military interoperability and capacity-building, which is part of a U.S. Africa Command (AFRICOM)-sponsored annual exercise program with partner nations in northern and western Africa. Flintlock 10, which includes participation of key European nations, is conducted by Special Operations Command Africa and designed to build relationships and develop capacity among security forces throughout the Trans-Saharan region of Africa.

"I am very grateful for us to receive this training," said the commander of the Malian Airborne company being trained. "We have soldiers from all over to discuss techniques and tactics and it has been very beneficial for us."

Over the last few weeks, the U.S. SOF advisors have focused training on close-quarter battle drills, battlefield medical treatment, and mission planning and movement - classes deemed necessary for the Malian and Senegalese soldiers to be able to conduct direct action raids on enemy targets.

"These are the kinds of techniques we can use against al-Qaeda," said the Malian captain. "They are moving fast. They are not staying in one place, they are always moving. These techniques will help us fight them."

According to one U.S. SOF soldier training the African soldiers, the focus of the training is to conduct direct-action missions, with a secondary emphasis on team mobility through desert terrain.

"The ultimate goal at the end is to have them run their own missions, from start to finish," he said.

While the Malians and Senegalese are eager to learn the techniques of the U.S. soldiers, they face a major challenge of not being able to fund equipment, supplies and vehicles which may affect them being able to sustain the training.

"They are eager to learn more everyday; the only question will be if they are able to maintain these skills once we leave," said the U.S. SOF soldier.

As training concluded for the day, the SOF trainers conducted a review with their African counterparts and explained what's planned for the coming days.

Approximately 1,200 European, African Partner Nation and U.S. personnel from 14 nations are involved in military interoperability activities across the Trans-Saharan region during Flintlock 10.

China strengthens investments in South Africa

China increases business stake in South Africa.

China on Thursday announced its largest investment in South Africa for more than two years, entrenching its position as the resource-rich continent’s most important economic and commercial partner.

For example, FAW, a Chinese carmaker, last month announced a $100m investment in South Africa. “Chinese companies are coming to the party,” said Martyn Davies, chief executive of Frontier Advisory Services, a Johannesburg-based consultancy. “They have a high level of confidence in the continent and see South Africa as a springboard for expansion elsewhere.”

The China Africa Development Fund and Jidong Development Group will help build a new cement plant worth at least Rmb1.5bn.

The announcement lays the ground for a planned August visit to Beijing by Jacob Zuma, the South African president, who has made deepening economic and political ties with China a priority of his foreign policy.

China emerged as South Africa’s largest trading partner last year, partly due to a large rise in iron ore exports, mirroring a trend in other countries on the continent, which have been courted by Beijing for their resources and growing markets.

The latest agreement will see the two Chinese entities joining forces with Continental Cement, a local enterprise, and Women Investment Portfolio Holdings, a South African company dedicated to empowering black women. They will build the new plant in Gauteng province, outside Johannesburg.

The new plant is aimed at making up a shortfall of domestic building products, such as cement, much of its caused by the huge infrastructure programme from construction for the football World Cup.

Congested roads and railways make it relatively costly for South Africa to import cement, so investment in local production facilities is correspondingly more attractive.

Growing economic ties with China and other big emerging markets have paved the way for closer political ties, especially since Mr Zuma came to office last May. While his predecessor, Thabo Mbeki, expressed reservations about China’s role in Africa, Mr Zuma’s own enthusiasm has been greater.

A $5.5bn investment by the Industrial and Commercial Bank of China in South Africa’s Standard Bank agreed in October 2007 remains easily the largest Chinese investment in Africa to date, accounting for about a quarter of the funds that Beijing dedicated to the continent.

Much of that investment has concentrated on roads, power plants and other infrastructure but analysts say a growing number of Chinese companies are beginning to buy building and other materials locally. They are also eyeing Africa’s rapidly growing consumer markets.

Ugandan-U.S. strengthen military ties

[caption id="" align="aligncenter" width="318" caption="VICENZA, Italy - Brigadier General Silver Moses Kayemba, chief of training and operations, Uganda Peoples Defence Force (right), is welcomed by Major General William B. Garrett III, commander of U.S. Army Africa, at the start of his visit to U.S. Army Africa's headquarters in Vicenza, Italy, April 27, 2010. (U.S. Army photo by Barbara Romano) "][/caption]

Both Uganda and the U.S. continue to enhance and deepen their partnership.

When Ugandan Brigadier General Silver Kayemba arrived at U.S. Army Africa headquarters on April 27, 2010, he was met by familiar faces.

Kayemba, the chief of training and operations for the Ugandan People's Defense Force (UPDF), was a key player during Natural Fire 10, a humanitarian assistance and disaster relief exercise co-led by the UPDF and U.S. Army Africa, held in Uganda in October 2009.

"This visit strengthens our relationship with the U.S. Armed Forces, particularly with U.S. Army Africa," Kayemba said. "We are looking forward to even closer cooperation in the future."

One of the first people Kayemba met was Major General William B. Garrett III, commander of U.S. Army Africa.

"As part of our engagement strategy, U.S. Army Africa invites senior military leaders from partner land forces to see how our command operates," Garrett said. "We create opportunities to discuss the way forward, as the U.S. Army continues to work with Ugandan land forces to strengthen their capacity to support security missions in Africa."

U.S. Army Africa leaders briefed Kayemba on the command's mission, its ongoing partnerships with African land forces to foster securing, stability and peace on the African continent. During his two-day visit, Kayemba also toured Caserma Ederle, stopping first at training simulators used by Soldiers prior to deploying.

In 2006, Kayemba visited several military sites in the United States, to include the Pentagon, National Defense University, and a U.S. Marine Corps base. As a junior officer then, Kayemba also attended the basic transportation officer course in the United States.

During Natural Fire, Kayemba served as exercise deputy director and worked closely with Garrett.

"We've been reviewing lessons learned from Natural Fire," Kayemba said. "We are going to benefit from what I've seen here and I look forward to working with U.S. Army Africa in future."

Military Exercise; Phoenix Express Kicks Off in Souda Bay

[caption id="" align="aligncenter" width="446" caption="SOUDA BAY, Greece - USS Gunston Hall (LSD-44) enters Souda Bay, Greece to participate in exercise Phoenix Express (PE-10), May 18, 2010. PE-10 is a two-week exercise designed to strengthen maritime partnerships and enhance stability in the region through increased interoperability and cooperation among partners from Africa, Europe, and United States. (U.S. Navy photo by Petty Officer 1st Class Edward Vasquez) "][/caption]

Military exersize starts,involving Africa, U.S. and European countries.

Phoenix Express 2010 (PE-10), a two-week, two-phase, multinational, maritime exercise among regional partners from Africa, Europe, and the United States, is set to conduct its kickoff pre-sail conference and conclude its in port training portion of the exercise.

The in port phase, which began in Rota, Spain, and continued in Souda Bay, Greece, focuses on medical training, maritime interdiction operations (MIO), helicopter operations and safety, damage control, navigation, deck seamanship, search and rescue (SAR), small boat operations and a leadership round table.

Ships and personnel involved will depart Souda Bay later this month and sail into international waters in the central Mediterranean Sea.

During the underway portion of PE-10, countries will track and board suspect vessels carrying suspicious cargo, and Maritime Patrol Aircraft and Automated Identification Systems, along with MIOs like SARs and Visit, Board, Search and Seizures will be performed.

U.S. commanders believe PE-10 is invaluable to theater partners because it fosters mutual understanding and improves international military partnering.

"Phoenix Express demonstrates theater partner nations' commitment to regional stability and maritime security," said Captain Martin Beck, commander of Task Force 68, whose task force is in command of the exercise. "During this exercise, maritime professionals will further develop the capacity to maintain maritime domain awareness. When they meet in the future to conduct combined peacekeeping or humanitarian operations, or to counter trafficking in drugs, people, or weapons in this region, they will be better able to respond and work together."

Twenty countries are expected to participate in the exercise as either an active participant or observer. U.S. units participating in Phoenix Express include the USS Gunston Hall (LSD 44), home ported in Virginia Beach, Virginia; USS John L. Hall (FFG 32), home ported in Mayport.

More background on the preparation for the exercise:

[caption id="" align="aligncenter" width="435" caption="ROTA, Spain - Lance Corporal Drew Van Hook, assigned to Fleet Anti-terrorism Security Team (FAST), Company Europe, at Naval Station Rota, Spain, instructs a Moroccan maritime interdiction operations team on basic close quarter battle training, April 27, 2010, in preparation for Exercise Phoenix Express. The goals of the exercise are to increase participating countries' knowledge and experience with FAST unit core capabilities and highlight common safety and security concerns in the maritime environment such as illegal immigration, criminal activity, narcotics trafficking, and weapons trafficking."][/caption]

In preparation for Exercise Phoenix Express 2010, North African Maritime Interdiction Operations (MIO) teams are training with Fleet Anti-terrorism Security Team (FAST) Company, Europe, April 19 to May 7, 2010 at Naval Station Rota, Spain.

Moroccan and Senegalese MIO Teams are training primarily on tactics, techniques, and procedures associated with Maritime Interdiction Operations.

The goals of the exercise are to increase participating countries' knowledge base and experience level with FAST unit core capabilities and highlight common safety and security concerns in the maritime environment such as illegal immigration, criminal activity, narcotics trafficking, and weapons trafficking.

Countering these issues require skills such as MIO, air operations and boat operations.

"Multilateral exercises like Phoenix Express are an important part of the U.S. Naval Forces Africa Maritime Supporting Plans and the International Military Partnering Lines of Operations" said Captain Martin Beck, commander of Naval Expeditionary Task Force Europe and Africa, Commander Task Force 68 (CTF 68/368). "The FAST Marines are working with our Spanish host to help train and prepare our North African partners for maritime security operations, which is key in our combined readiness to address the security challenges we face at sea."

Google focusing on Africa

Google is now focusing on Africa. The Wall Street Journal reports that:

LAGOS, Nigeria—Despite some of the lowest Internet penetration rates in the world, Africa has enticed Google Inc.

Lured by the continent's growth potential, Google aims to convince entrepreneurs, students and aid workers to make use of its search, mapping and mobile-phone technologies. But Africa—with roughly one billion inhabitants, over 50 countries and many regions that have limited access to electricity—presents huge obstacles.

"The Internet is not an integral part of everyday life for people in Africa," said Joe Mucheru of Google's Kenya office.

Africa lags far behind other big emerging markets in Internet use. Africa has 4% of global Internet users; China has 21%.

The continent also has some of the world's highest costs for mobile-phone and Internet service. In Nigeria, bandwidth for Internet carriers costs $3,000 to $6,000 a month per megabyte, according to Nyimbi Odero of Google's Nigeria office.

By comparison, the cost in the U.K. is about $20 a month per megabyte.

Despite the expense of Internet service, Google executives say Africa represents one of the fastest growth rates for Internet use in the world. Nigeria already has about 24 million users and South Africa and Kenya aren't far behind, according to the World Bank and research sites like Internet World Stats.

"The goal is to get more people online," said Estelle Akofio-Sowah, the Google country head in Ghana.

[caption id="" align="alignnone" width="442" caption="Workers at Johannesburg's OR Tambo airport take pictures with their mobile phones of one of the seven lions relocated from zoos in Austria and Romania to Lions Rock big cat sanctuary near Bethlehem in South Africa."][/caption]

Google wouldn't disclose how much it has invested in Africa-based operations, and says it doesn't yet have a revenue target for the continent. The company—which has a physical presence in Senegal, Ghana, Nigeria, Kenya, Uganda and South Africa—says it has around 40 employees working on Africa-focused projects, with some based on the continent and others working from elsewhere.

Other technology companies have also set their sights on the continent. Microsoft Corp., International Business MachinesCisco Systems Inc. and Hewlett-Packard Co. have sales offices throughout Africa, selling laptops, printers and software to fast-growing companies and an emerging middle class. Corp.,

Though there are small-scale Internet service providers, most Internet services in Africa are provided by cellphone companies, who provide data cards that users stick into computers' USB ports.

Mobile-phone use in Africa has grown rapidly in the last decade, and remains the most common way people communicate with each other, as opposed to email or social-networking sites.

"There is a tremendous pent-up demand for connectivity and access," Mr. Odero said.

Among the first Google initiatives on the continent since setting up offices there three years ago was the expansion of Google Maps. Detailed online maps of even the biggest African cities were almost nonexistent five years ago, analysts say. There are now Google maps of 51 African countries.

Tunji Lardner, a consultant in Lagos working with the state government, aims to use Google technology to prevent a common scam: selling homes in Lagos that aren't actually for sale. Hand-painted signs reading "This House is Not For Sale" are ubiquitous on the walls of homes in Lagos and most of the rest of Nigeria, but buyers continue to get cheated.

Google staffers in Nigeria recently provided Mr. Lardner with a phone that uses Google's Android operating system, which he will use to pinpoint houses actually for sale on Google Maps and create a database.

Other initiatives include the nonprofit VetAid, which has started using Android phones donated by Google in Tanzania and Kenya to track the health status of livestock.

In Uganda, Google provides a mobile text-based marketplace for traders.

And independent groups of developers have formed Google Technology User Groups, which meet to share knowledge about Google applications and services in eight African countries, including Cameroon and Egypt.

Not every Google initiative in Africa has been successful. Google staff in Uganda, in partnership with South African telecom giant MTN Group Ltd. and the Grameen Foundation, started three text-based programs for cellphones: Search, Tips and Trader. The free services attracted a large user base when they were first rolled out last summer—2.7 million texts sent in the first six months, according to Google. When MTN started charging for Google Trader, the marketplace text service, usage rates plummeted, according to MTN.

"The problem with offering services alone is that they're at the mercy of the mobile service carriers," said Jon Gossier, the American head of Appfrica, a company that mentors and incubates technology entrepreneurs in East Africa.

Google will be trying to prime interest during the coming World Cup in South Africa by launching a public relations drive through its YouTube unit, which launched a site dedicated to South Africa Monday.

The company is using the Internet video service to sponsor a street soccer tournament that will travel through several African countries and finish in South Africa.

A Google Street View team has also been traveling throughout South Africa to map as much of the country as possible before the World Cup.

Looking at the internet-penetration rates, not so good.  But already, in terms of cellphones, we're talking 30-40% penetration everywhere in Africa save the deep interior.

So Google apparently not waiting on the former to rise and instead targets the latter media device.  Mobiles are a party of everyday life in Africa, but the Internet is not (4% average).  Unfortunately, mobile costs are relatively high in Africa, and internet costs are even worse.

Google clearly takes the path of least resistance, and its aims are noble enough:  increase Internet usage by offering mobile text-based services as the lure.

I think Africa is ripe for a wireless revolution, it will take some ingenuity to find the right model in such a wide open land where there will be vast stretches of wild areas, maybe frame relay towers with point to point transmissions are perfect for this. I also think that wireless is the only option for most areas to start the saturation much like in the frozen countries of the north like Sweden and Finland. This would be an exciting assignment to help with this, I envy the folks who are rolling this out, beautiful land with interesting mixtures of keeping the wildness with allowing the power of the internet to keep folks connected into the global market place.

Being on the internet will become very important to participating in global trade so this is essential for African businesses and if Google can help make this accessible, bravo.

Counterterrorism training underway to curb Al Qaeda threat in Africa.

[caption id="" align="aligncenter" width="436" caption="A Malian soldier stood with US military personnel during an Operation Flintlock ceremony May 3. African, European, and North American participants from more than a dozen nations work within AFRICOM to combat the spread of terrorism."][/caption]

Annual West African counter terrorism exercise, Operation Flintlock  is underway.  It is  being  coordinated by America, Dutch and Spanish military personnel.

In the bare and unremarkable desert town of Thiès, a platoon of commandos from Mali and Senegal are scaling a building's edifice, one handful of rope at a time. This is practice.

Their American, Dutch, and Spanish handlers call it Operation Flintlock – an annual, West Africa-wide counterterrorism exercise to prep local militaries.

According to the script, a carload of European sightseers on their way, perhaps, to a waterbuck-filled nature reserve, will be kidnapped by desert bandits, ransomed to Al Qaeda in the Maghreb, and whisked to Senegal's northeastern frontier. And that's where a bit of rope-climbing expertise could save the day, as Senegal's finest shimmy down from hovering helicopters to stage a rescue.

"This is designed as a rehearsal for a multinational coordination center or a mechanism to counter terrorism," says Lt. Col. Chris Call, deputy commander of the Joint Special Operations Task Force-Trans-Sahara, and operations commander for Operation Flintlock. "This is necessary against a regional transnational threat, which in this region [is] a violent Salafist jihadist movement."

"The challenge [for the partner nations] here is how do they control their territory in countries that own just vast swaths of territory in some of the most inhospitable remote locations in the world," says Call, speaking by phone from Flintlock's multinational coordination center near Ouagadougou, Burkina Faso. "Our focus is on basic tactical military techniques … and helping to build capacity in our partner nations. Success for us is putting us out of a job."

At one time, a military exercise like Operation Flintlock – which is now in its fifth year – would have set African opinion-page columns aflame and set a fair number of African politicians pounding on tables with their shoes. Some African nations worried that the newly announced but vaguely defined Africa Command (AFRICOM) of the US Army would herald a new colonial presence in Africa, complete with permanent military bases and political interference.

But today, AFRICOM's military exercises often pass with little notice, and increasingly with the support of African leaders. In part, this is because African leaders now see a common threat: armed violent groups such as Al Qaeda in the Islamic Maghreb, which have carried out a series of murders and kidnappings from Mauritania to Algeria to Niger and threaten to topple any government that dares confront them.

For Senegal, for now, this threat is still hypothetical. Unlike Senegal's neighbors in the Maghreb – where Al Qaeda has been abducting tourists and aid workers, ransoming them off and profiting handsomely – the 50-year-old democracy here has never known Islamic extremism, only its home-grown Sufi mysticism, a permissive faith.

But for Senegalese brass patrolling the vast and remote flatlands, the threat could emerge at any moment. More than 500,000 tourists vacation here each year, touring ancient slave dungeons near Dakar or the hinterland's pristine riverbanks. Their souvenir-shopping and spa-surfing activities contribute 6 percent of the country's gross domestic product.

"We need to consider that tomorrow, that menace [in Mali and Mauritania] will be here," says Col. Ousmane Sarr of the Senegalese Army's public relations department. "Our economy counts so heavily on tourism that the state must ensure that the country remains secure."

Yet the US military wants Senegal to do more than lock down holiday spots from a few carjacking terrorists. Come 2011, the US hopes to run the entirety of Operation Flintlock from Senegal, a sign that the country can be the regional leader in parrying the Sahel's terrorism endemic.

[Correction: The original version misstated what operations the US hopes to run from Senegal.]

"I've worked in more than 24 countries, and Senegal's [military] is one of the most professional," says a US military official in Senegal, who asked not to be identified. "Senegal is an example to the subregion in its military competence, in its civilian control of the military, in its professionalism, and we'd like to learn from, replicate, and share those strengths across borders."

A major joint military exercise with countries around the volatile Sahara desert region is beginning as part of a US programme of counter-terrorism.  The three-week Operation Flintlock aims to improve the ability of the region's armed forces to work together to bring security to the area.

It serves as a base for the group al-Qaeda in the Islamic Maghreb and has seen increased terror attacks.  Drug smuggling is also growing, moving cocaine from South America to Europe.

Free trade talks between EU and Africa in limbo due to apparel exports from Asia.

There is growing friction from African textile markers towards their Asian counter parts over their growing trade talks with the EU (European Union) .

Kenyan textile producers face stiffer competition in their search for an alternative market as the low-cost Asian producers push for free trade arrangements with the European Union.

Pakistan and India are presently in talks to initiate a free trade area (FTA) with the European Union that would grant their firms easy access to the EU market.

The FTAs with Asian countries are expected to lower the tariffs further, raising the level of Asian exports into the EU market.

"While cheaper textiles from China, India and other Asian countries have squeezed our markets in US, we still prefer the market because of its protective tariffs," says Mr Jaswinder Bedi, chairman of Textile Manufacturers Association of Kenya.

Statistics from the African Cotton and Textile Industries Federation put the volume of Africa’s textile exports at Sh130.9 billion ($1.7bn), less than one per cent of the global textile sales.

More than 90 per cent of the African textile exports go to the US --a market which has since been opened to low cost Asian textiles following the expiry of the 2005 expiry Multi Fibre Agreement (MFA) --a legal instrument that once spread a blanket of protection against influx of developing countries’ products.

Compared to the American market which maintains higher tariff walls of between 16 and 32 per cent on textile products from countries with which it maintains non preferential trade agreements, EU’s external tariffs on textiles range from 8 to 14 per cent.

"To an African producer, EU is a very expensive market to penetrate because it requires heavy expenditure on promotion while most firms have also complained of its cumbersome entry rules," Mr Joseph Kosure, the acting CEO of Kenya’s Export Processing Authority told the Business Daily on Thursday.

Taking a cue from the successful enactment of the African Growth and Opportunity Act (Agoa) which opened the American market for African textile in 2000, the EU included in the EPAs apparel and textile in the list of items that would enter its market duty-and-quota-free.

But ten years since EPAs talks were initiated, African textile players maintain that lower external tariffs that EU extends to other regions have let in textile from low-cost countries.

What ones takes away from this is that the "China price" is hard to beat. Efficiency and productivity are what has driven Asian countries like Vietnam, Thailand, Indonesia and of course, China to rapid economic expansion and growth.

The only remedy for Kenya  and African exports is to increase the presence-market share in the US and develop niche markets, segments that will enable them to avoid direct competition from Asian exports were there at a price disadvantage, not a quality one.

Nigeria & China Sign Oil-Refinery Deal

Nigeria and China have come to an agreement to enhance their energy relationship. Both sides agreed on an oil refinery deal.

Nigeria and China signed a tentative deal to build three oil refineries in the West African state at a cost of $23 billion, strengthening the countries' energy partnership.

Nigeria, Africa's most populous country and one of its top oil producers, has been eager to boost gasoline supply and overhaul its rickety refineries. By helping Nigeria build new refineries, China may be able to expand access to the country's high-quality oil reserves.

"This is a deal we need for Nigeria to cut our reliance on imports," said a senior Nigerian oil official. He added that the refinery deal puts China "in the running" for getting additional access to oil acreage. "This is business, but it builds goodwill."

Under terms, Nigeria's state oil company, along with a host of Chinese government-run entities, would build three refineries and a petrochemical complex, according to a statement from the state oil company, Nigerian National Petroleum Corp.

Officials said critical details remain unsettled, such as the pact's financial terms and who would operate the plants.

Yinka Omorogbe, the legal adviser for NNPC, said there was no timetable on the deal. Ms. Omorogbe called Friday's deal a "nonbinding" memorandum of understanding, adding that "we're going to sign an agreement in the next couple months." Asked about pricing details, she said, "We haven't done anything in terms of costing. These are just preliminary talks. ... The details aren't worked out."

Similar deals have failed to get off the ground. India's ONGC-Mittal Energy has been in talks to build a $4 billion refinery in Nigeria since 2005, but the project hasn't materialized. Government plans to privatize Nigeria's refineries have never moved beyond the planning stage.

Still, the Nigerian government's provisional deal with China could represent a major expansion in their energy ties, and possibly come at the expense of European and U.S. competitors.

Western oil companies haven't been eager to build and operate refineries in Nigeria because of poor financial returns. Nigerian gasoline and diesel prices are highly subsidized, so the refineries operate at little or no profit.

Meanwhile, the government has struggled to strike a balance between inexpensive fuel for its poor and a commercially viable industry for domestic refiners. The cheap Nigerian gasoline makes it a hot product on the black market of other African countries, so fuel is smuggled out, resulting in shortages at home.

Nigeria's tough refining economics haven't deterred China, which has been scrambling to secure access to oil reserves in other parts of Africa and around the world. Nigeria is looking to offer offshore oil fields to foreign companies, but hasn't yet announced the timing for bids on new licenses.

Funding for the three refineries is expected to come from the China Export & Credit Insurance Corp. and a group of Chinese banks.

The Nigerian official said he didn't have details on what sort of returns Chinese banks might see from their funding. Each new refinery is slated to pump 250,000 barrels a day of refined products. It is unclear whether Nigeria would permit exports from the new refineries.

Officials from China State Construction Engineering Corp. and Cnooc Ltd., the Chinese state offshore oil company, weren't available to comment, while China National Petroleum Corp., China's largest oil company by assets, said it had no information on Nigeria's announcement.

China now has limited drilling rights in Nigeria, something it is trying to change in order to reduce its dependence on oil from Angola, the Asian giant's top supplier. China imported just 28,000 barrels a day of Nigerian crude last year., compared with its total oil imports of 4.77 million barrels a day, according to China Customs data.

This is simply just a continuation of China securing and enhancing the sources where its energy comes from to power its growing and expanding economy. While some may point out  China is simply over paying for access compared to their western counterparts, one has to think from the Chinese point of view. China doesn't have that long of a track record like western countries-companies of dealing with energy African states like Europe and the U.S.  Second, this is the right time since China is flush with cash, thanks  to its economy rapidly growing and the down turn due to the global financial crisis. This is a good opportunity for Chinese firms to increase their stake and say in the energy-resource game in Africa.

Uganda & Algeria sign deal with Russia for Jet fighters

News report states Russia signs multibillion dollar deal to deliver jet fighters to Uganda and Algeria.

Russia's state arms exporter Rosoboronexport has signed two contracts worth $1.2 billion on the deliveries of 16 jet fighters to Algeria and another six fighters to Uganda, the Russian Vedomosti daily reported on Monday.

The two African nations will receive different models of the Su-30 Flanker fighters. Algiers will receive 16 Su-30-MKI(A)s and Kampala will receive six Su-30MK2s, the paper said.

In 2008, Algiers cancelled the delivery of 34 MiG-29 Fulcrum multi-role fighters because of flaws in design. The Russian military bought the rejects for its own use.

Su-30 Flankers in various models have also been sold to India. India has so far received 120 out of the 230 jets it has ordered. Malaysia has also received 18 fighters.

Rosoboronexport has closed some $7.5 billion worth of arms export deals since the beginning of the year. According to the company's head, Anatoly Isaikin, Russia signed $15 billion worth of contracts during 2009.

Russia's presence in the African arms market has declined in recent years, despite Rosoboronexport's high profile activities in Algeria and Sudan. At various points during the Cold War, Russia was the primary arms supplier to regimes from Libya to Ethiopia to Angola; however, its overall share of the African market has continued to fall.

In 1999, Russia controlled nearly 6 percent of the African market, but by 2006, its share had dropped to just over 3 percent. More­over, the importance of the African market to the Russian defense industry has waned as Africa's total share of exports declined from 21 percent in 1999 to 18 percent in 2006 and approximately 15 percent in 2008.

At the core of Russia's arms relationship with Africa, also representing one of Russia's largest arms deals, was the $7.5 billion deal with Algeria, which was completed in March 2006. The deal included the advanced 2S6M Tunguska air defense system, SA-19 SAMs, S-300 air defense systems, 36 MIG-29SMTs, 28 Su-30MKs, 180 T-90 main battle tanks, two Kilo class diesel electric submarines, and 16 Yak-130 advanced trainers.

With a delivery timeline stretching from 2007 through at least 2011, Russia will remain committed to this tender for years to come, as the Algerian deal represents a case study in Moscow's debt relief for arms sales strategy. However, recent developments indicate that the deal may have reached an impasse. In early 2008, Algeria returned the first batch of MiG-29SMTs to Russia, noting that the purportedly new aircraft were actually used and in poor operating condition.

Russia's arms deal with Algeria allowed it to gain access to the Moroccan market. As the two North African nations remain wary of each other's military buildup, Russia was able to capitalize on Morocco's interest in diversifying its arms supply. In 2003, Russia signed a deal with Morocco for the supply of 26SM Tunguska air defense systems and accompanying SA-19 missiles, which were delivered in 2005 and 2006.

Aside from the more lucrative northern African markets, major Russian arms sales continue to be directed at conflict-ridden regions: Sudan, Eritrea, and Ethiopia are major markets for Russian arms. Despite a U.N. arms embargo that was imposed in 2005, Russia has continued to supply Sudan with arms - albeit most deliveries are for hardware such as IFVs, APCs, and helicopters ordered before the embargo. Russia also continues to sell an amalga­mation of used fighter-attack aircraft, artillery, anti-tank missiles, and SAMs to Ethiopia and Eritrea, which remain locked in a low-intensity conflict.

Outside of Algeria and the aforementioned conflict regions, the majority of Russian arms sales to Africa consist of helicopters, namely the ubiquitous Mi-8/17, Mi-24, and Mi-35. While Russian military hardware, specifically small arms, continues to proliferate throughout Africa, these transactions are generally associated with international arms dealers outside the official channels of the Russian government

Namibia to get $1 billion in funds from Russia for Uranium hunt

Russia has agreed to fund $1 billion for a uranium hunt in Namibia.

Russia was ready to invest $1 billion (R7.75bn) in uranium exploration in Namibia, Russia's state nuclear firm said yesterday, as it seeks to compete for projects in the country with global mining house Rio Tinto.

"We're ready to start investing already this year," Sergei Kiriyenko, the head of state corporation Rosatom, told journalists. He said the uranium could be used for the nuclear power plant Russia was building in Turkey.

The comment came as Namibia's President Hifikepunye Pohamba visited Moscow to meet Russia's President Dmitry Medvedev and Prime Minister Vladimir Putin.

Earlier this month Russia and Turkey signed off on a $20bn project for Moscow to build and own a controlling stake in Turkey's first nuclear power plant.

Medvedev discussed the possibility of investing in uranium exploration in Namibia last year when he visited the country.

Medvedev said yesterday that Russia was also ready to invest in the completion of two hydroelectric stations in Namibia.

In an earlier post i discussed Russia's new found interest in enhancing its position and economic dealings in Africa.

Business Climate in Africa

A recent study about business on the continent reveals that:

Africa’s immense growth potential could help explain high levels of confidence compared to that of business leaders elsewhere, many of whom work in mature markets that were heavily impacted by the crisis.

At the World Economic Forum Africa, that was held in Dar es Salaam, Tanzania, the common theme was economic-development co-operation and taking a bigger spotlight on the international stage. "Time to move Africa from the periphery to the center of the global economy" was the common theme among those who attended.

Africans must believe in themselves and “be the change they want to see” was a message that resonated across the Forum’s sessions and private meetings. President Kikwete of Tanzania reminded participants at the closing plenary that the smallest share of global exports comes from Africa – just 3.5%. “Africa remains predominantly a primary producer and importer for industrial use. We produce what we don’t consume and we consume what we don’t produce,” he said. “This cannot continue.”

The press release went on to say that:

Despite Africa’s huge potential, it suffers from lack of integration in the global economy. “If there is any predicament to African development, it is this state of affairs,” said Jakaya M. Kikwete, President of Tanzania. “[It is time] to move Africa from the periphery to the centre of the global economy.”

To end the continent’s marginalization, Africans must believe in themselves and “be the change they want to see” was a message that resonated across the Forum’s sessions and private meetings. Jacob Zuma, President of South Africa, noted that the upcoming World Cup 2010 will show the world that Africa is ready to do anything. “There were a lot of doubts and scepticism. But people who come to Africa will see that we are not just bushes and mountains. They will see how Africa is ready to do anything that can be done anywhere else in the world.” President Zuma urged potential investors to act now. “In a short period of time, Africa is going to be the place for doing business globally. FDI will come on its own.”

There is no time for appropriate regulatory structure to be set up before initiating public-private partnerships, advised Pat Davies, Chief Executive, Sasol, South Africa, and Co-Chair of the meeting. “Focus on where there are markets and opportunities and use business to remove barriers,” he said. “Give business reasonable certainty and predictability and we can [create more] partnerships. Companies help create regulatory frameworks by making the investment decision.”

One of the keys to unlock Africa’s potential lies with young people, who comprise 60% of the population. “Let’s take a bunch of young people and put their minds on fire. You should believe in the demographics [of Africa], make your human capital capable and entrepreneurship will happen,”

The last part is key, especially when the continent has young demographics compared to Europe and Asia. There is lots of growth potential due to the fact the many people are of age to work for years to come, develop societies and create socio-economic dynamism built with new ideas and thinking.  We all know that people of old age rarely create or develop new break throughs that benefit the rest of society.

President Kikwete most important statement was when he said "Unleashing entrepreneurship is key, but will depend on quality education of Africa’s next generation of business and political leaders. The future of our nation is in the hands of our youth."

I have to reinforce this point. Investment early on goes a long way to build a cohesive and productive  society for all. This has been proven over and over. It's a solid foundation for success.  Besides education, the business has to be improved to create room and opportunities for entrepreneurs to network and small-medium size businesses.  improve the quality of a country’s business regulatory environment.

The World Bank uses 10 selected indicators to measure the competitiveness of an economy to investors. They include:

• The ease with which one can start a business.


• How long one takes to get construction permits for a premise.


• The ease with which one can hire workers or relieve them of their duties when necessary.


• How long it takes for one to register property.


• The ease with which one can obtain commercial credit


• How well an investor and his investment is protected from expropriation or harassment.


• The ease with which one can pay taxes.


• The ability and efficiency of importing/exporting goods and services from the host country.


• How efficiently and effectively one can enforce a contract in default and finally the ease with which one can close their business if need be.

Investment indicators



These indicators measure the quality of a country’s business regulatory environment.

Africa has the poorest business environment with the average rank of all sub-Saharan Africa countries being position 139 out of 183 countries. It is, however, the second fastest reforming region going by the number of reforms undertaken in the last one year after eastern Europe and central Asia. This means improving the business environment and trade maybe finally hitting home in a continent known for bureaucratic quagmire and corruption.

It is sad that Africa is home to the poorest, economically marginalized, and least developed but with technologically sophisticated human beings on the planet. For a continent endowed with natural resources, our governments should ensure we are the first and fastest in terms of reforming and improving our business regulatory environments to hasten socio-economic development at national, regional and continent wide level.

From the ‘Doing Business 2010’ rankings, the country’s business regulatory environment deteriorated and therefore, dropped by 11 places from position 84 last year to position 95. Rwanda has a consistently improving business environment and was the world champion reformer last year beating countries with long trading histories like the UAE and Egypt.

Mauritius, at position 17 has the best business environment in Africa and made six changes to the regulatory environment which helped it improve its ranking by six positions. Others ranked as having better environments in Africa ahead of Kenya were South Africa, Namibia, Rwanda, Zambia and Ghana at positions 34,66,67,90 and 92 respectively ahead of Kenya.

Investing in Kenya takes 12 formal procedures, 34 days on average and costs about a third of per capita productivity.



Less duration



In Germany, an Organization for Economic Co-operation and Development (OECD) country, it takes only nine procedures (five of which take place concurrently), an average 18 days and only a twentieth of a German’s per capita productivity.

But in construction, Kenya is doing well.  The country has 11 procedures one must fulfil to invest. Kenya is ahead of the OECD average of 15 procedures and five months. This is the best rational explanation for the construction boom that has been happening since 2004.

The steps that are taken need to be duplicated across the continent, not just in certain pockets for the continent to prosper.

Mineral OPEC for African Countries?

African countries are discussing  plans to form a mineral OPEC to better serve their interests.

African leaders are pushing for tougher terms on mining concessions after 25 years of structural adjustment when countries cut red tape and offered generous tax holidays to foreign prospectors.

The new dynamic was on display at a recent mining conference in Senegal. The chief executive officer of a multinational Africa mining firm was speaking, but Senegal's president didn't appear to be listening.....

"I think we're at a turning point," says Bonnie Campbell, political science professor at the University of Quebec in Montreal and author of "Mining in Africa." "There's been a quarter-century where a certain investment-friendly road has been taken. [Now] there is a recognition that there needs to be another focus."

A Cartel Modeled After OPEC?

The capstone of that push, at least for Wade, would be an international alliance of Africa's mineral-rich nations, modeled after OPEC  a pan-African body that could influence the price of metals like the cobalt in Chinese-made laptop and cellphone batteries, 90 percent of which comes from Africa, according to the business watchdog SwedWatch.

"It's an ambitious but feasible idea," says Mazou Yessouph Faudy, geological director for Niger's Mining Ministry. "Our economy is falling. As a producer of uranium, it would be good to involve ourselves in a union of producers that could set the price."

Already, according to estimates by gold mining company Randgold Resources, the continent produces 30 percent of the minerals required by the US and China.

"[Africa is] going to become a very important player in the commodity and minerals market," says Roger Dixon, chairman for South Africa's SRK mining consultancy, citing China's 11.9 percent growth in its gross domestic product, the total of goods and services produced, in the first quarter of 2010. "With that kind of demand, I think it's a great opportunity for Africa to move to the forefront of things."

Certainly good idea for Africa, a continent that is full of natural resources.  When uranium prices were flying over $100 in the international markets , Avera (a french company ) that has been exploiting Niger main resource for over 50 years, locked the price for that poorest country in the world at around $ 25.

Considering Africa has some of the poorest nations on the planet, I can't really blame them for wanting to band together to control their resources. Problem of course, like always will be corruption. Just look at the Petro states and where that has lead those governments.

Russia's New Dash in Africa

Russia feeling left out by other countries like China, India, the U.S., has rapidly expanded its presence on the continent after a long absence due to the break up of the Soviet Union. This is a while back but gives the reasoning and insight into President Medvedev's trip in Summer 2009:

The Kremlin has launched an ambitious project to restore Moscow's past glory on the African continent. Policy makers in the U.S. and Europe need to understand that it's happening -- and formulate an effective response -- before they find their own relationships with Africa changing in significant and problematic ways.

Russian President Dmitry Medvedev and more than a hundred Russian businessmen last week visited Egypt, Nigeria, Namibia and Angola on the longest tour of Africa a Russian leader has undertaken since the collapse of the Soviet Union. Unlike President Obama, who is going to Africa next week for a brief stop to talk about global warming, Mr. Medvedev and his team targeted oil, gas, diamonds and uranium...

By all appearances Mr. Medvedev and, by extension, Prime Minister Vladimir Putin are reviving the old Soviet Africa strategy. The Soviet Union maintained friendly relations with many African countries, including Egypt, Sudan, Ethiopia, Somalia, Namibia, Angola and Mozambique. Starting in the 1950s, Africa was viewed as a prime economic battlefield between Soviet command-and-control planning and Western capitalism. From the 1960s to the '80s, Western institutions like the World Bank and U.S. Agency for International Development poured billions of dollars into supporting governments in countries like Zaire and Nigeria. Moscow offered similar funding to its "friends."....

Africa lost its significance as an ideological chessboard after the collapse of the Soviet Union, and the current volume of trade between Africa and Russia is trivial. But the continent remains an economic prize. China has spent billions of dollars in the past few years gaining friends, influencing dictators, and tying African countries to Beijing.

Now the Kremlin is trying to regain its status as a global player, including re-asserting itself in Africa. Mr. Medvedev's visit to Africa appears to be the first coordinated attempt by Moscow to do so. Where once the Soviet Union sought political hegemony, today's Kremlin is after economic objectives like trade and access to raw materials. But a shift in Africa's relationship with Russia will have consequences for many.

Africans may benefit from increased competition among the world's powers to develop its vast resources. Russia and China have already invested billions to gain a foothold there. Western companies are similarly interested. The income generated from developing these resources has the potential to generate jobs and boost incomes in Africa. But this isn't a sure thing. Resource-rich countries are vulnerable to corruption and instability.

Competition is always good for industry and nations, large or small, but African countries need to be as always, careful.

A flood of Russian money could facilitate corruption in places where that's already a problem. Moreover, Moscow and Beijing are comfortable working with oppressive regimes, like Sudan's, that Western countries condemn. As a result, Africans may suffer even more as Russia and China expand their influence.

Reporting of the trip by state controlled Russia Today.



This policy that Russia is embarking on should be seen in the context to increase and deepen the influence that it has on Europe as a whole. Russia is Europe's biggest energy supplier, and Moscow wants to maintain this status as long as possible. North and Western African states are growing suppliers of oil and gas to Western European markets, which have the potential to eat into the profits of Russian energy companies.  One way of slowing this down is to "cooperate" with African states in the energy sector, create so called partnerships that benefit the Kremlin and don't fully target the strategic hold that Russia has on Europe.

Brief overview of modern Sudan and Latest news

Brief overview of modern Sudan thanks to by the Economist and Latest news update on Sudan.



The Darfur rebels have suspended peace talks:

Darfur's most powerful rebel group said Monday it was suspending peace talks with Sudan's government, accusing Khartoum of attacking villages and military positions in breach of a ceasefire.

The announcement from the Justice and Equality Movement (JEM) was largely symbolic as formal talks have been stalled for months, but it underlined the distance between the two sides seven years after the conflict in the Darfur region began.

"Because of the ongoing comprehensive offensive against the civilian population in Darfur and because of the aggression against our forces on the ground, JEM has decided to freeze its participation in the Doha peace process," JEM spokesman Ahmed Hussein Adam told Reuters by telephone.

JEM accused Sudan's army of bombing its positions and nearby settlements in the Jabel Moun area of West Darfur, close to the border with Chad, over the past two weeks.

Joint U.N./African Union peacekeepers said they were not able to confirm the reports as they did not have troops in the area and it was not possible to get other independent verification.

No one was immediately available to comment from Sudan's army but the force has regularly denied mounting any offensives in the remote border area.

JEM was one of two mostly non-Arab rebel groups which took up arms against Sudan's government in 2003, accusing it of starving the remote western region of funding and marginalizing its people.

Khartoum, which mobilized mostly Arab militias to crush the uprising, announced a new peace push in the region late 2008. It signed a ceasefire with JEM in Qatar in February this year, as well as a "framework" agreement setting out the terms for future negotiations.

The Sudanese army and government  said it remained committed to the peace talks.

You can catch up on the divide and mistrust of the North and South below.



In other news from Sudan, President Omar Hassan al-Bashir won the election that was recently held. Although the results were not so clear cut for an outright victory.  It was the first "election" in 24 years.

On the face of it, Sudanese President Omar Hassan al-Bashir got the perfect election result.

His victory with 68 percent was not too high that it would spark concerns of fraud but high enough above the 50 percent needed for a win for him to be able fly in the face of the disapproving West.

Bashir is now the only elected sitting head of state wanted by the International Criminal Court for war crimes.

But the path to victory was far from smooth.

Three weeks before what was promising to be an exciting electoral race, irregularities including a government printing press winning the contract to print ballot papers, sparked a wave of boycotts effectively ending any hope of a competitive presidential poll.

But given the late notice all the candidates’ names remained on the ballot papers. So despite opposition leaders urging their supporters not to go to vote — if they wanted to, they could in theory still vote for their man (or woman).

There was confusion and uncertainty whether if and when the elections would take place due to expected fraud and unrest in Darfur.

More background on the elections.



The elections both highlighted the interests of both Washington and Sudan.

Washington needs the rocky partnership between the SPLM and the NCP who joined in government after a 2005 north-south peace deal to continue to ensure a key southern referendum on secession goes ahead in January 2011.

Some agree that a successful referendum will go a long way to ensuring Africa’s longest civil war does not reignite. But opposition Umma party spokeswoman Mariam al-Mahdi warns Bashir “will bring only the bloodiest referendum.”