US Army-Libya Army try to advance relations

[caption id="" align="aligncenter" width="462" caption="TRIPOLI, Libya - Major General William B. Garrett, commanding general, U.S. Army Africa (front row, center), meets with key Libyan military leaders during a trip to Libya to discuss the emerging relationship between U.S. Army and Libyan land forces in early May 2010"][/caption]

The US and Libyan armed forces of both countries are trying to establish new military ties after years of being enemies.

The U.S. Army Africa commanding general made a historic trip to Libya to discuss the emerging relationship between the U.S. Army and Libya's land forces in early May 2010.

Major General William B. Garrett III visited Tripoli, where he held talks with key Libyan military leaders. The visit indicates the U.S. Army's commitment toward building a cooperative relationship with Libya's land forces and increasing regional security.

Garrett's visit was coordinated through the U.S. Embassy Tripoli, and U.S. Ambassador Gene Cretz greeted Garrett at Mitiga International Airport.

"We are gradually opening a dialog that has not existed between our land forces in a long time," Garrett said. "Times have changed and relationships must change too."

The general's first stop was the headquarters of the North African Regional Capability (NARC) to meet Major General Ahmid Auwn, Libya's chief of staff for Army Mechanized Units and Executive Director of the NARC. The NARC is part of the African Standby Force, which consists of five regional brigade-size commands that can support the African Union during times of crisis. Libyan willingness to open a dialogue with the U.S. Army is in an important part of increasing regional cooperation.

"We will look to the NARC leadership to work together on future events that are mutually beneficial," Garrett said.

The general also toured the Libyan Bureau of Technical Cooperation and National Committees and the Libyan Military Staff College, where he met with the director, Major General Ahmid Mahmud Azwai. These visits emphasized the importance of material standardization, training and education in developing future leaders.

Garrett's visit follows a military cooperation committee meeting held in Tripoli in late-February, where delegations of Libyan and U.S. military officers discussed areas of common interest and planned future partnership events, said Major Philip Archer, U.S. Army Africa's North African Regional Desk Officer. "Proposed events include inviting Libyan officers to visit Army schools in the United States, holding discussion on border security, conducting medical exchanges and sharing helicopter procedures," Archer said.

One of U.S. Army Africa's goals is to help Libya and other members of the NARC build the brigade into a capable force that is interoperable with other regional standby forces and can be used for peace support operations.

"U.S. Army Africa's discussions in Tripoli are a positive step toward working together with Libya's military," Garrett said. "We now have a better understanding of each other's goals and can work together to achieve increased security, stability and peace in North Africa."

Garrett concluded his trip to Libya with a wreath laying ceremony at the tomb of fallen American sailors, who perished when their ship exploded in Tripoli harbor in 1804.

This is a continuation of Africa's new importance to the US. The US lifted the embargo that was in place while Libya was developing its Nuclear program uptill 2004.

Sept. 20, 2004 - President Bush revoked the United States trade embargo on Libya on Monday and took other steps aimed at eventually establishing normal relations with the government of Col. Muammar el-Qaddafi in return for its keeping a promise to give up nuclear, chemical and biological weapons.....

Among the steps taken by Mr. Bush were the removal of economic restrictions on aviation services, permitting direct flights between the United States and Libya; unfreezing $1.3 billion in assets; and providing what Mr. McClellan said would be "a level playing field for U.S. businesses in Libya" by allowing them to secure American economic benefits for foreign investment.....

With the lifting of most economic sanctions, the way is clear for American oil companies to try to secure contracts or to revive previous contracts for Libya's vast oil reserves.

US companies were the big winners in lifting of the sanctions. They won most of the new contract bids.

US oil companies have been awarded most of the contracts on offer at the first open licence auction in Libya.

More data in us oil imports from Libya.

Sarkozy seeks fresh start and better trade at Africa summit

[caption id="" align="aligncenter" width="262" caption="French President Nicolas Sarkozy greeted Rwanda's President Paul Kagame."][/caption]

Over 250 African and French business leaders rubbed shoulders with African heads-of-state in Nice on Monday, as the 25th France-Africa summit, which for the first time will focus on both trade and politics, got under way.

NICE, France—Africa has the potential for exponential economic growth and must have a louder voice in world politics, President Nicolas Sarkozy said Monday, opening a summit with 38 African leaders.

Paris wants to use the gathering as a springboard for business deals and to bury bitter memories of colonial rule.

It is "completely abnormal" that no African country has a permanent seat on the United Nations Security Council, Mr. Sarkozy said, calling for reform of the body in an address to the Africa-France summit in the Riviera city of Nice.

"It is not possible to talk about the great questions of the world without the presence of Africa," Mr. Sarkozy said. "Our destinies are indissolubly linked." He said "Africa is our future" and will be a principle reservoir for world economic growth in the decades to come.

The 25th Africa-France summit coincides with the 50th anniversary of independence for 14 former French colonies. It marks a new era of ties—for Mr. Sarkozy a partnership of friends able to discuss commerce or stickier questions like human rights.

Breaking away from tradition, France has invited nearly 200 business leaders from France and Africa to this year's summit.

The dictatorships, conflicts, corruption and poverty that have plagued African nations for decades and define their image in the West have been reduced to sideline events at the two-day summit.

Egyptian President Hosni Mubarak stressed the need to change "African realities" through commerce and new infrastructure. He asked that the summit put the accent on developing African economies, including strengthening the role of the private sector.

"We want at all cost to end the marginal status of the African continent," he said.

A harsh reality for nations like France is the growing presence in Africa of China, India, Brazil and Iran, and to a lesser degree the U.S. Many of those nations are moving full speed ahead to scoop up Africa's natural resources, make trade and win contracts to build infrastructure.

In French-speaking countries, mainly in north and west Africa, France must live down its past as a colonial ruler. An Elysee Palace official said Mr. Sarkozy is more interested in bilateral talks with leaders of countries not in the circle of former colonies.

Only one African country wasn't invited to the summit—Madagascar, the Indian Ocean island where a 2009 coup toppled an elected president.

Notable absent leaders include Sudanese President Omar al-Bashir, sought by the International Criminal Court for allegedly masterminding atrocities in Darfur. Zimbabwean President Robert Mugabe, facing EU sanctions travel restrictions, also wasn't invited.

This happens in the context of China's increase and economic-political expansion in Africa. Trade between Africa and China has increased 10 fold since 2000.

France is seeking to renew its ties with Africa at the two-day gathering that will touch on global governance and Africa's campaign for more of say at the United Nations Security Council, the UN's top decision-making body. France wants to increase the number of African states represented and also have two permanent African nations on the UN security counsel, but not let them have no veto power. Of course the lack of veto power was not welcomed by African delegates.



The summit is viewed by many as an attempt by the Elysee Palace to boost its dwindling influence in the region in the face of stiff competition from China, India and other emerging economic superpowers. China is now Africa’s biggest trading partner, and has invested billions over the past decade to tap into the continent’s raw materials to fuel its own fast-growing economy.

When he took office in 2007, French President Nicolas Sarkzoy vowed to break with the past and end what he described as the paternalistic relationship between France and its former colonies, a relationship based on privileges and hand-outs popularly referred to as “Francafrique”.

France has been frequently criticized for ignoring human rights violations in its former African colonies and propping up autocratic leaders in its quest for business privileges in the resource-rich continent.

In recent months, Sarkozy has attempted to mend France’s tense relations with Rwanda following the 1994 genocide. During a landmark trip to Kigali in March, Sarkozy said France would do everything possible to ensure that "all those responsible for the genocide are found and punished." Diplomatic relations between France and Rwanda were restored last year, three years after Kigali severed ties with Paris.

Has France really turned over a new leaf in Africa?

But critics say that 50 years after several African nations gained independence from France, not much has changed in the country's relationship with its former colonies.

While Sarkozy impressed when Liberian President Ellen Johnson Sirleaf became the first African head of state to be invited to the presidential palace after he took office, he disappointed many when his first visit to the continent was to Gabon: then-President Omar Bongo of Gabon was a central figure in the ‘old’ ‘Françafrique’ style of diplomacy.

The disappointment turned to outrage last year, when the French government appeared to support Bongo’s son, Ali Bongo, in the August 2009 polls, sparking criticism among Gabonese opposition figures and igniting street protests across Paris.

Sarkozy’s cozy relations with Paul Biya, whose 28-year rule in Cameroon has been criticised by international rights groups, has also raised eyebrows in Africa circles. Last year, when Sarkozy welcomed the controversial African leader by praising Cameroon for its moderation, demonstrators in Paris sported placards that read, "Biya murderer, Sarkozy accomplice."

At this year's summit however, Sarkozy aims to focus on business. To mark the start of the much-trumpeted new era in French-African relations, a charter is set to be signed at the end of the conference which will pledge greater cooperation in training, jobs and environmental issues.

And while the annual summit has traditionally focused on former French colonies, the only two heads of state to hold face-to-face talks with Sarkozy at the conference's sidelines are South Africa's Jacob Zuma and Nigeria’s Goodluck Jonathan, both leaders of former British colonies

China defends its policies in Africa

In the Wall-Street Journal, China's vice commerce minister pushed back against Western criticism of China's activities in Africa saying that  they are "more market-driven"

Economic activity in Africa has surged in recent years, with Beijing becoming an important investor, creditor and donor for many African nations. But with the rise of China's influence upon the continent, concerns persist that Beijing is preying on the continent's resources to feed the Chinese economy, contributing little significant improvement to African livelihoods.

Amid such criticism—and as China asserts that its presence in Africa is increasingly being shaped by nongovernment actors—Beijing has put in place some mechanisms to deal with issues surrounding its investment and trade on the resource-rich continent.

"China's presence in Africa is becoming more and more market driven, the actors operating there are diverse, there are many models, and the areas they are in are broad," said Fu Ziying, the vice commerce minister, in a recent interview. "The Chinese government is more and more aware that as the economic and trade cooperation between China and Africa evolves, there need to be some laws and protections in place."

In a rare discussion about China-Africa ties, Mr. Fu, the senior trade official in charge of China's Africa portfolio, spoke about what he termed the misunderstandings surrounding China's presence in Africa.

In response to questions about some sensitive cases in the past year related to China's moves in Africa, Mr. Fu's comments suggested there were limits to what the government could do, shedding little light on the controversies.

Last year, a Hong Kong-based entity named the China International Fund struck a massive, $7 billion mining and infrastructure deal in Guinea that gave it, through two Singapore-registered entities, sweeping concessions to the mineral riches of the West African nation. Guinea authorities are now investigating the deal.

Company filings and other documents show that some CIF executives have ties to a Chinese state-owned enterprise. Mr. Fu reiterated denials by Chinese government officials that the government has any involvement in CIF.

"This fund is entirely built by individuals, and it has absolutely no government or Chinese state-owned company background in it," Mr. Fu said, adding that the Chinese government took the step to "inform relevant countries" that no such fund is registered in China.

Meanwhile, when asked about the investigation by Namibian authorities into alleged bribery involving Chinese security-equipment provider Nuctech Co., Mr. Fu said the matter was a civil-commercial dispute, arising from commercial competition, and that the Chinese government wouldn't intervene in such cases.

Mr. Fu, who accompanied powerful Politburo member Jia Qinglin to Namibia in March, said that the Nuctech case hadn't come up during the visit. Neither Nuctech nor its parent company has commented on the investigation.

The probe, which emerged late last year, is sensitive because the Communist Party Secretary of Nuctech's parent company is Hu Haifeng, the son of Chinese President Hu Jintao. References to the case disappeared from Chinese news websites soon after the story surfaced.

Mr. Fu also expressed frustration over persistent criticisms against China by Western nations and multilateral development agencies, which have cited Beijing's lack of transparency in its dealings in Africa and that the financing it provides without conditions on better governance or tackling corruption sets back the local economy.

"It's like marriage. The husband and wife are happy. Their happiness quotient is very high. But suddenly you have someone beside you that keeps criticizing the marriage," he said. "If Africa has a criticism about China's investment in Africa, then that is a problem."

China's engagement with Africa has begun to be studied only in the past few years. One recent study by the Centre for Chinese Studies at South Africa's Stellenbosch University and the Rockefeller Foundation listed the development of local worker skills and labor rights as key challenges that may determine whether Africans will benefit from China's presence on the continent in the long run.

The study also recommended more joint ventures be set up between African and Chinese companies to transfer technology and build capacity and an increase in the role of African civil society in project consultations.

This year China-Africa trade will exceed $100 billion, and the growth in bilateral investment is likely to enter its fastest period in the next five years, Mr. Fu said. Last year, trade between China and Africa fell to $91 billion amid the global financial crisis, from $107 billion in 2008, according to Chinese government data.

In 43 African countries, China and the corresponding African nation have set up a joint committee that convenes to discuss economic and trade issues when needed, Mr. Fu said. Such committees often don't meet more than once a year, and Mr. Fu indicated that there are cases that end up outside of that framework. But he claimed that, along with agreements on bilateral trade and investment protection, they offer a way to smooth burgeoning ties between the two developing economies.

Mr. Fu also responded to a question about a case involving investment in the other direction, from Africa into China. South Africa's Sasol Ltd. in December submitted a plan with its Chinese joint venture partner to build a plant that will convert coal to liquid fuel in China. The project, estimated to cost $5 billion to $7 billion, would be among the largest by an African company in China.

However, a document prepared by the local-level economic-planning agency in Ningxia, where the plant will be located, said that the review of Sasol's plan was being delayed to await a rival plan based on Chinese technology. Sasol has said it remains confident in the project.

"This [Sasol's] project hasn't been rejected," Mr. Fu said, adding that at issue is still a broader question of whether it is better to stick to using crude oil or convert coal to oil for China's energy needs.

Mr. Fu himself led a delegation in April to five African countries: the Central African Republic, the Republic of Congo, Gabon, Liberia and Chad.

In Liberia, where China is carrying out a $2.6 billion project to revitalize the iron ore Bong Mines, Mr. Fu said his group convened a roundtable with senior representatives, including ambassadors, from the local embassies, including ones from the U.S. and EU, along with foreign and local media.

Mr. Fu said the roundtable, including another one set up while he was in Gabon, was done to address the misunderstandings of China in Africa.

China's business with Africa.



More discussion on China in Africa.



China in Africa : Friend or foe for the European Union?



More detailed discussion if China is a constructive partner for Africa or new colonist.



China accused of neo-colonialism taking Africa's resource away.

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.

Nigeria Seeks Use of Nuclear Energy for Peaceful Purposes

The Nuclear renaissance continues on, this time in Nigeria:

Nigeria has called for the endorsement of its bid and those of other countries to acquire nuclear technology for peaceful and developmental purposes.

Speaking at the ongoing Review Conference of the Nuclear Non-Proliferation Treaty (NPT) at the United Nations (UN) headquarters in New York, Minister of Foreign Affairs Odein Ajumogobia said Nigeria hopes that the conference would endorse “appropriate practical measures to preserve the right of countries such as ours to exploit our entitlement under the NPT framework to use nuclear energy for such developmental purposes.”

The minister, at the meeting convened to bring up measures that would ensure non-proliferation of world’s nuclear weapons and ensure disarmament by nuclear powers, said Nigeria would continue to support positive initiatives aimed as establishing nuclear weapon free zones in areas of the world where they do not currently exist.

He said the biennial resolution at the first committee of the UN General Assembly on behalf of the group of African States demonstrates Nigeria ’s resolve to abide by the NPT framework, its responsibility and obligations.

Noting that Nigeria is clear and unshaken in its commitment to the ideals and objectives of the NPT and to a nuclear free world, the minister said the country’s “well documented” commitment to non-proliferation of nuclear material for non-peaceful purposes has been reinforced in recent years through the ratification of the 1997 Model Additional Protocol; the Safeguard Agreement with the IAEA; and the entry into force in July 2009 of the Treaty of Pelindaba.

According to Ajumogobia, “Nigeria’s endorsement of the 13 practical interim steps for the systematic and progressive efforts by state parties to accomplish the total elimination of nuclear weapons as the only absolute guarantee against the use, or threat of use, of such weapons”.

The minister, who also delivered a speech at the conference on behalf of the African Group, said: “Nuclear weapon states should implement in good faith all their obligations and commitments under the NPT; its various review process; desist from developing nuclear weapons and grant unconditionally, negative security assurances to non-nuclear weapon states in the spirit and letters of NPT, within a legally binding framework.”

South Africa and Japan to start Nuclear Cooperation

Japan and South agreed to cooperate in the field of Nuclear energy.

SA's relations with Japan took a new turn last week when the two countries agreed to start negotiations on future co-operation on friendly nuclear energy that could be SA's answer to alternative power generation and the reduction of carbon emissions.

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There was no time frame for signing an agreement, Kazuo Kodama, a spokesman for Japanese Foreign Minister Katsuya Okada, said on Friday at the 10th SA-Japan Partnership Forum meeting in Pretoria. But Okada and SA's Minister for International Relations and Co-operation Maite Nkoana-Mashabane regarded the matter as urgent, Kodama said.

//

The visit last week of Okada, a member of the Democratic Party that took power last year, ending the post-war domination of the Liberal Democrats, marked the centenary of official relations between SA and Japan.

Japan's willingness to share nuclear technology with SA indicates a significant change in relations. Nkoana-Mashabane said SA was considering upscaling the stature of Japan's diplomatic relations. This would be the fourth country the administration of President Jacob Zuma would have prioritised after the US, China and Germany since taking office.

Japan is SA's third-largest trading partner. Exports to Japan last year were R34bn down from R66bn in 2008. Imports slowed to R26bn last year from R41bn in 2008.

Japan also expected SA to play a leading role on the continent in building the new world order, participating in the Group of 20 countries as well as the transformation of the UN Security Council . Both Japan and SA are considered to be candidates for permanent seats on the council, Okada said.

Talks between the two countries explored the potential to expand and diversify trade that for many years had focused on SA largely exporting natural resources to Japan. SA's principal exports are base metals, heavy metals and cars, while imports from Japan are mainly cars, machinery, chemicals, earthmoving equipment and hi-tech equipment.

More background info on Japan-South Africa relations.

Japan Makes Move on Oil pipeline plan

Financial Times reports that Japan

Plans to transform the east African oil sector by building a pipeline from south Sudan to the Kenyan coast were boosted on Wednesday when a Japanese company expressed interest in joining the project.

Toyota Tsusho, the trading arm of the Japanese carmaker, said it was developing plans to build the $1.5bn pipeline, which would run for 1,400km from Juba, the capital of south Sudan, to the Kenyan island of Lamu, where an oil export terminal would be constructed.

The project would be the boldest yet by a Japanese company in Africa. China has also been studying the proposed pipeline and Toyota Tshusho said that co-operation with Beijing was possible.

The geopolitics of east Africa could be reshaped in January, when south Sudan will hold a referendum on independence. If it chooses to secede, a new country will emerge with about three-quarters of all the oil presently possessed by Sudan.

At present, the oil is exported via pipelines leading through northern Sudan to an export facility on the Red Sea. The government of the semi-autonomous south wants the new pipeline to reduce its dependence on the north and to create an export route via Kenya.

Takashi Hattori, a Toyota Tsusho executive, said the company’s plans were preliminary but that the goal was to build a pipeline with a capacity of 450,000 barrels a day, and an export terminal, the ownership of both of which would revert to Kenya after 20 years.

Mr Hattori said: “Of course, we need to discuss with the governments. But this is to show our intention to be involved.”

Japan is the only big industrialised country that buys Sudanese oil, receiving 2 per cent of the country’s petroleum exports in the first half of last year.

Japan is racing to join its fellow Asian countries like India and China to gain access to resources, raw materials and energy. China is following the recent Japanese engagement because it has

also expressed interest in the pipeline through Kenya and Mr Hattori has opened the door to possible co-operation with Japan. He said: “Maybe to collaborate with a Chinese company would be one of the options. We’d like to study any possible scheme further with the Kenyan government and the Sudanese government.”

Mr Hattori added that a “key success factor” would be securing finance from the Japan Bank for International Co-operation.

But Dennis Awori, the head of Toyota East Africa, said: “Everything is subject to very thorough feasibility studies, not to mention agreements with governments.”

If south Sudan achieves independence, the views of its government on who should build the pipeline will be crucial. “It’s all academic until we know what the south Sudanese want,” said David Raad, a business consultant in Juba. He added: “All the parties involved will be looking at the expertise, the resources and the intensity of proposals being made.”

Kenya supports the proposed pipeline as a way to bring development to its northern territories. The Toyota Tshusho executives were briefing the press in the office of Raila Odinga, the Kenyan prime minister, who visited Japan last month to discuss the pipeline and other investment opportunities.

Securing oil and other natural resources in Africa is one of Japanese diplomats main objectives, something that they share with China.  Tokyo has boosted its presence

Unlike China’s state-backed drive to secure resources and influence in Africa, Japan’s activity on the continent has been more fragmented .

Toyota Motor has a production hub in South Africa and Komatsu, a big Japanese maker of construction equipment, counts Africa as one of its biggest markets.

Toyota Tsusho’s rivals – trading companies such as Sumitomo and Sojitsu – have mining and oil interests in other corners of the continent, but they have not backed large infrastructure projects such as the Kenya oil pipeline.

Japanese funding for infrastructure has instead come in the form of government aid, which has given the country a more visible presence on the continent. Aid to improve agricultural productivity has also been abundant.

Unlike China, Japan can't be ruthless in its Business dealings like China.  Japan isn't criticized for its form of government or human rights like say China, which in the long run will give it an edge, just like many western businesses and corporations.  The tide is already turning against Chinese business dealings, although rather slowly, it is turning.

Ugandan Rumbles Onwards

Uganda is on the come up. The progress that has been made has been substantial, especially in the Health and energy sector.  The country is getting tough with Oil companies that might damage long term growth in Oil exploration.

The government of Uganda has threatened to throw out rivaling oil companies in the country if their disagreements threaten the exploration of oil in the country.......

The oil resources in Uganda and indeed all other mineral resources belong to the people of Uganda, and government as the custodian of these resources has a duty to ensure that they are harnessed and developed for the benefit of its people”, the minister said.

“If the two companies disagreed, it will not have an impact on the government. If they squabble among themselves, or quarrel, I will not hesitate to invoke their license in the oil exploration. If they become a nuisance or involved in courts, I will throw them out. We cannot allow the delay in the oil exploration”, he said.

He added that “we cannot allow a monopoly situation by one company in the Albnertine Graben.

A trade show recently opened between it and Sudan.

The first ever trade show exhibition involving traders, businessmen and industrialists from Uganda and southren Sudan is to be held starting on Wednseday in the southern Sudan capital of Juba.

The two day trade show, according to south Sudan trade ministry official, Albert Lukudu, is an outcome of improved trade ties between the two countries and better business infrastructure in southern Sudan.

The pilot exhibition is for businessmen from both countries to link up and resolve business challenges.

Addressing the press in Juba, the Acting Consul General of Uganda, Habib Migadde said, "This is the first time a joint exhibition involving businessmen from Uganda and southern Sudan is taking place. That is good for the two countries. It is an ideal way for business professionals to discuss and find solutions in business registration and taxation issues."

Migadde added that the exhibition is a way to deal with price fluctuations and to cut out the middle man.

This could ease tensions in Northern Uganda and Southern Sudan.  Not only that, the East Africa region is enjoying traded like never before.

Nations of eastern and southern Africa have been working for most of this decade to build an alliance to strengthen their position as an economic and trading force. They recognize that good governance and consistent policies throughout their region will create a better atmosphere for business and trade. An improved business climate will provide their people greater opportunities for jobs and prosperity.

Neighboring nations of the world are teaming up in regional trade groups, improving access to regional markets, and strengthening their economic integration. By committing the partners to clear and enforceable rules, these organizations promote transparency and good governance. The trend is marked by a string of acronyms stretching across the globe—APEC, Asia-Pacific Economic Cooperation; ASEAN, the Association of Southeast Asian Nations; NAFTA, the North American Free Trade Agreement; and, of course, the world’s most advanced regional market, decades in the making, the EU, the European Union.

Now, here comes COMESA, the Common Market for Eastern and Southern Africa.

COMESA has 19 member countries: Burundi, Comoros, Congo Democratic Republic, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe. Fourteen of these states are already in a free trade area.

Trade development among our member nations is the cornerstone of our agenda, and we have pursued a variety of steps to liberalize and facilitate trade throughout our region in a process that economists call “integration.” We also have a vision for our relationship to lead to a common market and achieve monetary union, following the same course as the Europeans.

The COMESA Free Trade Area [FTA] gives us a type of trade bloc in which our countries have agreed to eliminate tariffs and quotas when we trade among ourselves. The next step for us in this process of economic integration will be to form a “customs union,” whereby we retain our free trade arrangements but also adopt a common policy for an external tariff imposed on goods imported from nonmember nations.

Trade in the region will improve for example

today goods being imported from Japan to Rwanda pass under the eyes of border officials at multiple points—as they are off-loaded from a ship at Mombasa, Kenya; when they pass overland from Kenya into Uganda; then again, as they pass the national border into neighboring Rwanda. They receive a final inspection from officials in Kigali. Under the Customs Union, the goods will simply be inspected and cleared only once in Mombasa. We believe reduced inspections for goods will benefit both business and the consumer, streamlining trade, reducing costs, and eliminating opportunities for corruption that can arise at each inspection point.

With a regional population of 400 million and a gross domestic product of almost US $420 billion, ours is an attractive region for investment and trade in this globalized world.

The 2009 economic crisis did not affect the country.

In his first address to a special sitting of the East African Legislative Assembly in Kampala Tuesday, President Museveni noted that the Ugandan economy had earned over 1.6 billion dollars from regional trade during the last financial year............The widening cross border trade between Uganda, Southern Sudan, Eastern Congo, and Central African Republic had great benefits for the Ugandan economy Even during the recent economic crisis did not affect Uganda very much because of the regional trade," said the Ugandan President.

Mr. Museveni has reaffirmed the need to lower cost of production and doing business in order to lure more investors to the East African Region. He said there is need to pay attention to development of physical infrastructure like roads, railways and improvements in electricity power generation.

More on President Museveni talking about trade and what the region needs.

Oil discovery could lead East Africa to prosperity or infection of "Dutch disease"

[caption id="" align="aligncenter" width="307" caption="Oil drilling platform"][/caption]
Time.com is reporting on what might be another dent to the peak oil theory and lead a new oil rush to east Africa. This can be either good for the region or bad (just look to what has happened to the middle east rich oil states.)

Seismic tests over the past 50 years have shown that countries up the coast of East Africa have natural gas in abundance. Early data compiled by industry consultants also suggest the presence of massive offshore oil deposits. Those finds have spurred oil explorers to start dropping more wells in East Africa, a region they say is an oil and gas bonanza just waiting to be tapped, one of the last great frontiers in the hunt for hydrocarbons. "I and a lot of other people in oil companies working in East Africa have long been convinced that it's the last real high-potential area in the world that hasn't been fully explored," says Richard Schmitt, chief executive of Black Marlin Energy, a Dubai-based East Africa oil prospector. "It seems, for a variety of geopolitical reasons, that more than anything else, it's been neglected over the last several decades. Most of those barriers are currently being lowered or [have] disappeared altogether."

It all comes down to management and proper oversight by both the local government and rule of law, especially business law. It is not in any one's favor for the region to go down the same path as Hugo Chavez. With the right plans and implementation, energy resource might just what is needed as a solid foundation towards down the road of prosperity for the region.

More Oil spots in Africa.