Centre Amphitheatre, Union Buildings, Pretoria
24 January 2007
Thank you for joining us once again. Let me begin with work in progress:
Democratic Republic of Congo (DRC)
As you know, democracy in the DRC is being increasingly consolidated and it
really is becoming one of Africa's great success stories.
But the recent good news is that Laurent Nkunda, the rebel Congolese general
has said his fighters have started rejoining the government army after talks in
Rwanda.
From reports, it is clear that agreements have been reached on the inclusion
of General Nkunda's soldiers into the National Army of the DRC. Consequently,
over a thousand of his soldiers have begun to be integrated into the Army of
the DRC.
Discussions are ongoing as to the role of General Nkunda in a post-election
DRC. The Kinshasa government had issued an international warrant via Interpol
for Nkunda's arrest for alleged war crimes committed by his forces during their
2004 occupation of the town of Bukavu. This issue will have to be taken into
consideration within the context of trying to find an overall solution
including as to the future of General Nkunda.
I am also happy to report that Senate elections were held on Friday, 19
January 2007 and in results announced the same day
Outcome of Senate Elections
In results announced later the same day:
Of the 108 senate seats:
* the Alliance of Presidential Majority (President Kabila's Alliance)
received 68 seats
* the Union for the Nation (former Vice President Bemba's alliance) received 21
seats
* the remaining seats are shared between smaller parties that a not part of the
Alliances and independent candidates.
Of importance was the election of former Vice President Bemba as a Senator
for Kinshasa.
Four former Prime Ministers under former President Mobuto, have been elected
as Senators.
The general trend in the DRC is positive and we do believe that the
conditions are good to enable us to sustain the advances we have made in the
DRC.
Somalia
Since our last briefing the international community has expressed concern at
the removal of the Somali speaker of parliament Hassan Sheik Adan on 17 January
2006 and it is believed this has the potential to pose an obstacle to the
reconstruction process in Somalia.
Kenya continues to tighten security around its borders in an attempt to
prevent the fleeing Union of Islamic Courts (UIC) leaders from entering its
country. On 17 January 2006, Mr Sheikh Sharif Sheikh Ahmad who is the second in
command within the UIC leadership was arrested at a roadblock in Damajale
location while he was heading to the United Nations High Commissioner for
Refugee Camps in Dadaab Division.
It is reported that the Transitional Federal Government (TFG) has been
engaged in a process of consultations with key warlords in Somalia. This
process is said to be contributing positively towards the establishment of
administrative structures in that country.
These developments prompted the United Nations (UN) Office for the
Co-ordination of Humanitarian affairs (OACHA), headed by Philippe Lazzarini to
call the international community to seize this opportunity to launch projects
that support stabilisation and make visible difference in the people's lives.
According to the Special Representative some of the programmes expected to be
prioritised include back to school programmes, sanitation, income-generation
activities and resettling internally displaced persons most of whom occupy
government buildings, and the demobilisation and reintegration of militias.
However, we are concerned that the situation still remains very volatile.
Thirty-four more alleged suspected Islamic court fighters have been arrested by
the Kenyan authorities and have been handed over to Somalian authorities. These
include four foreigners � a Canadian and 3 Eritreans and indeed they are saying
that they are just business people with no involvement in terrorist
activities.
What is more worrying is that the UIC in Somalia has vowed to fight a
guerrilla war against the government forces and what they say is their
Ethiopian allies. According to the Deputy Chairman of the UIC, "This is a new
uprising by the Somali people. The only solution can be reconciliation and
talks between the Transitional Federal Government and the Union of Islamic
Courts."
I believe that is a call coming through from many parts of the world
including the African Union: to have long term solution you need an all
inclusive discussion including elements of the UIC.
The African Union (AU) Peace and Security Council, in its recent meeting
which discussed Somalia, has reiterated the same call: "there exists a unique
and unprecedented opportunity to restore structures of governance in Somalia
and bring about lasting peace and reconciliation."
It stressed the need on the part of the Transitional Federal Institutions
(TFIs) to embark on an all-inclusive and genuine process of dialogue and
reconciliation within the framework of the Transitional Federal Charter. It
welcomed the stated commitment of the leaders of the TFG to dialogue and
reconciliation, and encouraged the TFG to pursue its ongoing efforts with a
view to reaching out to all segments of the population. It also encouraged the
Chairperson of the Commission to take all necessary steps to assist this
process and to ensure that the AU plays a leading role in this process.
The general understanding is that without an all-inclusive process, this
golden opportunity will disappear.
The AU Peace and Security Council then decided to authorise the deployment
of the African Union Mission in Somalia (AMISOM) for a period of 6 months with
the mandate to:
* provide support to the TFIs in their efforts towards the stabilisation of
the situation in the country and the furtherance of dialogue and
reconciliation
* to facilitate the provision of humanitarian assistance
* to create conducive conditions for long term stabilisation, reconstruction
and development in Somalia
In this respect AMISOM will be adequately equipped to project the
appropriate posture, and shall undertake the following tasks:
* to support dialogue and reconciliation in Somalia, working with all
stakeholders
* to provide, as appropriate, protection to the TFIs and their key
infrastructure, to enable them to carry out their functions
* to assist in the implementation of the National Security and Stabilisation
Plan of Somalia, particularly the effective re-establishment and training of
all inclusive Somali security forces, bearing in mind the programmes already
being implemented by some of Somalia's bilateral and multilateral partners
* to provide, within capabilities and as appropriate, technical and other
support to the disarmament and stabilisation efforts
* to monitor, in areas of deployment of its forces, the security
situation
* to facilitate, as may be required and within capabilities, humanitarian
operations, including the repatriation and reintegration of refugees and the
resettlement of Internally Displaced Persons (IDPs)
* to protect its personnel, installations and equipment, including the right
of self-defence.
AMISOM shall comprise 9 infantry battalions of 850 personnel each supported
by maritime coastal and air components, as well as an appropriate civilian
component, including a police training team.
The initial deployment shall involve at least 3 infantry battalions, with
adequate arrangements for additional battalions to follow quickly.
AMISOM shall be deployed for a period of 6 months, aimed essentially at
contributing to the initial stabilisation phase in Somalia, with a clear
understanding that the mission will evolve to a United Nations operation that
will support the long term stabilisation and post-conflict reconstruction of
Somalia.
It goes on to make calls to the international community � AU member states,
the League of Arab States, the European Union and its member states, the UN and
all other AU partners, to urgently provide, in a predictable and co-ordinated
manner, the required financial, technical and logistical support to facilitate
the deployment of AMISOM as soon as possible.
Visit to Africa by new United Nations Secretary-General
As you know, the new Secretary-General Ban Ki-Moon is visiting parts of
Africa where all these issues will be high on his agenda.
He will visit the DRC, proceed to Addis Ababa where he will attend the AU
Summit where the issues of Somalia, Sudan/Darfur, Cote d'Ivoire will be high on
the agenda. and then on to a meeting of the Quartet where he will focus on
matters relating to the Middle East which is also an area of constant concern
for us.
Listing of South African individuals and entities associated with Al-Qaeda
and the Taliban by the United Nations Security Council's 1267 Committee: Farhad
Ahmed Dockrat, Junaid Ismail Dockrat and Sniper Africa
Let me contextualise this:
The Security Council is the United Nations organ that bears primary
responsibility for maintaining international peace and security in accordance
with Article 24 (1) of the Charter of the United Nations, which reads as
follows:
"In order to ensure prompt and effective action by the United Nations, its
Members confer on the Security Council primary responsibility for the
maintenance of international peace and security, and agree that in carrying out
its duties under this responsibility the Security Council acts on their
behalf."
The Al-Qaeda and Taliban Sanctions Committee ('1267 Committee') is one such
subsidiary body. Its mandate is to monitor the implementation of sanctions
against Al-Qaeda, the Taliban and their associates worldwide by Member States
of the United Nations.
As a member of the Security Council in 2007 and 2008, South Africa is
therefore currently also a member of all the subsidiary bodies of the Council,
including the 1267 Committee.
Resolution 1267 (1999), which was adopted under Chapter VII of the Charter
on 15 October 1999, imposed financial sanctions against the Taliban, as well as
a flight ban on aircraft owned, leased or operated by or on behalf of the
Taliban.
Security Council resolution 1390 (2002) adopted on 28 January 2002 which,
under Chapter VII of the UN Charter, imposed a global travel ban, financial
restrictions and an arms embargo against individuals or entities listed by the
Committee as members or associates of Al-Qaeda and the Taliban.
You can see the consequences of these resolutions are quite extensive.
According to operative paragraph 2 of resolution 1390 (2002) adopted under
Chapter VII of the UN Charter making it mandatory, sets out the actions to be
taken by all Member States of the United Nations as follows:
* Freeze without delay the funds and other financial assets or economic
resources of these individuals, groups, undertakings and entities, including
funds derived from property owned or controlled, directly or indirectly, by
them or by persons acting on their behalf or at their direction, and ensure
that neither these nor any other funds, financial assets or economic resources
are made available, directly or indirectly, for such persons' benefit, by their
nationals or by any persons within their territory.
* Prevent the entry into or the transit through their territories of these
individuals, provided that nothing in this paragraph shall oblige any State to
deny entry into or require the departure from its territories of its own
nationals and this paragraph shall not apply where entry or transit is
necessary for the fulfilment of a judicial process or the Committee determines
on a case by case basis only that entry or transit is justified.
* Prevent the direct or indirect supply, sale and transfer, to these
individuals, groups, undertakings and entities from their territories or by
their nationals outside their territories, or using their flag vessels or
aircraft, of arms and related materiel of all types including weapons and
ammunition, military vehicles and equipment, paramilitary equipment, and spare
parts for the aforementioned and technical advice, assistance, or training
related to military activities.
Any member of the UN may petition the 1267 Committee to add individuals or
entities to the list, or to remove them from the list.
According to the rules of procedure, the Chairperson of the 1267 Committee
on receipt of the names, distributes the list to all 15 members of the
Committee. Committee members are given a 5-day period to indicate whether they
object to the listing or not.
If a Member State within this period places a hold on a name(s), the name(s)
cannot be included in the Consolidated List because the Committee operates by
consensus. A listing could be on hold for a number of years.
As you know, the US has now given notice of the listing of the two Docrats
and we have five days in which to make known our action in this regard.
It is our common experience that since these resolutions have come into
force, during 2006, many such listings were placed on hold by countries like
the United Kingdom, the United States, the Russian Federation, China, France,
Denmark and Qatar. They have always indicated that the names are placed on hold
to enable them to have further discussions and to investigate the consequences
of this listing in terms of national law and to be fully satisfied that the
listed individuals are indeed involved in terrorist activities and possible
consequences of domestic laws.
It is South Africa's view that we should also ask the 1267 Committee to put
on hold the listing of these two individuals until we have further discussed
with the relevant players in this regard.
You must understand that once you are on the list, it is very difficult to
get off the list. Therefore, it has very serious consequences and we want to be
absolutely certain that we are also totally in compliance with our national
law. Although it is mandatory if it is a Security Council Chapter VII
resolution, we will have to understand how it impacts on our national law and
the constitution. At the same time, we have to be sure that anyone who is
listed is involved in terrorist activities and the listing is therefore
legitimate.
We have to take into consideration that we have a counter terrorism
legislation, viz. the Protection of Constitutional Democracy Against Terrorist
and Related Activities Act (Act 33 of 2004) and this would become effective
when the Security Council formally includes the names on the 1267 Consolidated
List. We have to follow certain procedures in terms of this too. This is the
first time that we face such a challenge and will have to consult many legal
structures to get a better understanding of the 2004 legislation. We cannot
predict any outcome at this stage.
We will call on the Security Council, in line with what many other countries
have done, to put these listings on hold.
Irrespective of the processes in the Security Council, the US is expected to
proceed with the designation of South Africans on the US Domestic Terror List.
The US would insist that any bank operating through the US or using the SWIFT
system would have to freeze the assets of the suspects, in accordance with the
US legislation, or the funds would be seized from the banking institution and
forfeited.
Refusal of Entry or Deportation of South Africans
Let me now refer to something that is increasingly becoming a matter of
concern to the South African government: increasingly, without any reasons,
South African's travelling abroad and not only to the United States, even with
the relevant travel documents, are being deported upon arrival. You are
familiar with the case of Professor Habib who is the Executive Director:
Democracy and Governance of the Human Research Sciences Council (HSRC). As you
know, he was scheduled to go to the United States as part of the HSRC
delegation to meet with many academic and non-academic institutions in the US
and many foundations to have discussions as they have done in the past. He had
a valid visa but was deported. He has appealed to us to try to get some clarity
on the matter because as an academic in the HSRC he has many reasons to travel
to the US. Indeed, he has just been invited to go to a major conference later
this year. If he has been deported once, it is obvious that his name is on some
list and he will not be allowed entry into the US until this matter has been
cleared up.
The Ports Authority in the US has said this is not a matter under their
mandate and that the State Department should be contacted. The HSRC has written
to the State Department and to ourselves to request we seek some clarification
as the consequences are quite serious.
Unfortunately, as we were working on this, we were informed that the 10-year
visas of Prof Habib, his wife and two sons were revoked. Indeed they are
expressing concern since one of the son's was scheduled to travel to the US to
attend a workshop on Youth and the United Nations.
It is clear that increasingly, South Africans, even with the relevant travel
documents, will find themselves on some list which has not been given to us and
will continually be deported from countries. There is now a system that once
names are provided, they are circulated worldwide and you will not be aware of
the basis on which you are being listed and deported. This is a matter of some
concern to us since it does indicate that unless there is some form of
transparency, many innocent people will find themselves caught in this
situation.
State visit to South Africa by Chinese President
President Hu Jintao will visit South Africa within the context of an
eight-nation African tour (Liberia, Sudan, Cameroon, Zambia, Namibia,
Mozambique, Seychelles and South Africa).
He is scheduled to arrive in South Africa on Tuesday, 6 February 2007 and
depart on Thursday, 8 February 2007.
During the visit he will hold discussions with President Mbeki, receive a
courtesy call from Deputy President Phumzile Mlambo-Ngcuka, visit the Cradle of
Humankind and present a keynote address at the University of Pretoria.
Chinese Perspectives re: Africa
During the Bandung Africa-Asia Conference in April 2005, the Chinese
President called for the creation of a Strategic Partnership with Africa that
will focus on three main areas of co-operation: political solidarity, economic
co-operation and socio-cultural co-operation
It is also important to harmonise, synchronise and align the Forum on
China-Africa Co-operation (FOCAC) with the New Partnership for Africa's
Development (NEPAD) and to leverage FOCAC to the benefit of NEPAD
China's increased engagement with the continent presents an opportunity for
a valuable contribution to Africa's growth and development.
A positive pro-active approach on the relationship between China and Africa
needs to be developed and implemented, in order to harness resources and focus
activities towards meaningful deliverables that would serve primarily the
interests of Africa
Much of China's activities in Africa are conducted under FOCAC
In the November 2006 FOCAC Beijing Declaration, China and Africa committed
themselves:
"Properly (to) handle issues and challenges that may arise in the course of
co-operation through friendly consultation in keeping with China-Africa
friendship and the long-term interests of the two sides."
China and Africa adopted the sector-specific Beijing Action Plan
(2007-2009), based on the shared imperative to "promote friendship, peace,
co-operation and development," and to "advance the new type of strategic
partnership between China and Africa in keeping with" the FOCAC Beijing
Declaration.
Visit to South Africa by Premier Wen Jiaboa
In preparation for the visit of Premier Jiaboa to South Africa in June 2006,
Assistant Foreign Minister He Yafei stated that it was "erroneous and
one-sided" to believe that it (China) is only interested in Africa because of
its energy resources, arguing that it had comprehensive ties with the
continent.
The visit by Premier Wen Jiaboa from 17 - 22 June to Egypt, Ghana, the DRC,
Angola and South Africa following a five-nation African tour by Chinese
President Hu Jintao in April 2006 which was highlighted by a series of oil
deals reflecting China's rising demand for energy to power its booming
economy
"Boosting China Africa friendship and all round co-operation is a long-term
and strategic decision China made, and it is a natural choice for the two sides
in pursuit of common development and prosperity. Strengthened consultation and
closer co-operation between the two sides will uphold the legitimate rights and
interests of developing countries and advance democracy in international
relations. I am convinced that with the concerted efforts of China and Africa,
we will surely make a greater contribution to the building of a harmonious
world of enduring peace and common prosperity."
In October 2006 Chinese State Councillor Tang Jiaxuan stated: "China is
committed to helping Africa and hopes to see Africa grow and become stronger.
The economic co-operation and trade between China and Africa are mutually
beneficial. China's development has created more development opportunities for
Africa.
First China's development has created a growing export market for Africa. In
2005 China-Africa trade volume reached US$39,8 billion. It included US$21,1
billion in imports from Africa, which exceeded China's exports to Africa.
Second China's total investment in Africa has reached US$6,27 billion. China
has launched over 800 non-financial investment projects in 49 countries,
covering trade, manufacturing and processing, resource development,
communications and agriculture. China will develop new forms of co-operation,
expand the scale of investment, upgrade co-operation and provide quality
service to promote common development of both China and Africa.
Third, over 720 major projects have been completed in 49 African countries
with Chinese assistance, and 58 projects have been launched in 26 African
countries with preferential loans from China. China has exempted 10,9 billion
yuan (US$1,34 billion) in debts of 31 heavily indebted poor countries and least
developed countries in Africa. China has also trained over 14 600 African
personnel in various fields."
A further indication of the Chinese approach to Africa is reflected in
President Hu Jintao's 8 point plan:
1. Double its 2006 assistance to Africa by 2009.
2. Provide US$3 billion of preferential loans and US$2 billion of
preferential buyer's credits to Africa in the next three years.
3. Set up a China-Africa development fund which will reach US$5 billion to
encourage Chinese companies to invest in Africa and provide support to
them.
4. Build a conference centre for the African Union to support African
countries in their efforts to strengthen themselves through unity and support
the process of African integration.
5. Cancel debt in the form of all the interest-free government loans that
matured at the end of 2005 owed by the heavily indebted poor countries (HIPC)
and the least developed countries (LDC) in Africa that have diplomatic
relations with China.
6. Further open up China's market to Africa by increasing from 190 to over
440 the number of export items to China receiving zero-tariff treatment from
the least developed countries in Africa having diplomatic ties with China.
7. Establish three to five trade and economic co-operation zones in Africa
in the next three years.
8. Over the next three years, train 15 000 African professionals; send 100
senior agricultural experts to Africa; set up 10 special agricultural
technology demonstration centres in Africa; build 30 hospitals in Africa and
provide RMB 300 million of grant for providing artemisinin and building 30
malaria prevention and treatment centres to fight malaria in Africa; dispatch
300 youth volunteers to Africa; build 100 rural schools in Africa; and increase
the number of Chinese government scholarships to African students from the
current 2000 per year to 4000 per year by 2009.
To give concrete expression to this 8-point plan, during the FOCAC Summit,
China offered a package of measures in support of African development, namely
to:
* Provide US$5 billion in preferential loans (US$3 billion) and preferential
buyer's credits (US$2 billion) over the next three years.
* Double aid to Africa by 2009 from 2006 levels.
* Set a target of US$100 billion in Sino-Africa trade by 2010, up from the
current US$39,7 billion in 2005 (expected to reach US$50 billion in 2006).
* Extend Approved (Tourist) Destination Status (ADS) to a further nine
African countries (Algeria, Cape Verde, Cameroon, Gabon, Rwanda, Mali,
Mozambique, Benin and Nigeria), bringing the total to 26 African countries with
ADS status.
* Encourage Chinese firms to invest in Africa. At the end of 2005, Chinese
investment in Africa totalled US$6,27 billion. To this end, China will
establish a US$5 billion China-Africa Development Fund to encourage and support
Chinese firms to make investments in Africa.
* Construct a Conference Centre for the African Union in Addis Ababa.
* Cancel debts in the form of all interest free government loans that
matured at the end of 2005 owed by the heavily indebted poor countries (HIPC)
and least developed African countries (LDC) that have diplomatic relations with
China (US$1,4 billion in debt of 31 countries had previously been
cancelled).
* Further open up China's markets by increasing from 190 to more than 440
the number of export items enjoying zero-tariff treatment from the 28 least
developed countries in Africa having diplomatic relations with China.
* Set up 3 to 5 economic and trade co-operation zones in Africa over the
next three years.
* Over the next three years, train 15 000 African professionals, send 100
senior agricultural experts to Africa, set up 10 special agricultural
technology demonstration centres, build 30 hospitals, build 30 malaria
prevention and treatment centres and provide US$38 million in grants for the
provision of artemisin, send additional medical teams to Africa, build 100
rural schools, double the number of Chinese government scholarships to African
students to 4000 per year by 2009, dispatch 300 youth volunteers to Africa, and
build more Confucius Institutes in African countries to meet the needs in
Chinese language teaching.
* Continue to support Africa in the implementation of NEPAD and increase
co-ordination and co-operation of the Beijing Action Plan (2007-2009) with
NEPAD.
During the FOCAC Summit in Beijing, November 2006, Chinese companies signed
16 contracts with 11 African countries to buy minerals and build
infrastructure.
During November 2006 it was announced that the West African Development
Bank, BOAD, had signed two co-operation agreements worth 46 billion CFA francs
with the People's Bank of China and the Chinese Export-Import Bank.
Officials of the three banks signed the accords during the two-day China
Business Days, organised by BOAD in collaboration with the Central Bank of the
West African States (BCEAO) and the West African Economic and Monetary Union
(UEMOA). The first agreement is for a technical co-operation fund of about US$1
million or 550 million CFA francs to support Chinese technical assistants
working with the BOAD, as well as for investment projects, study visits, and
business studies.
The second accord is for a credit line of �70 million, about 45,92 billion
CFA francs, signed between BOAD and the Chinese Export-Import Bank.
This will support the funding of projects, as well as goods and services
using Chinese technology in the West African Economic and Monetary Union
(UEMOA) member countries. The credit line will also support development of
infrastructure, exploitation of energy resources and construction projects.
Culture and Tourism
There are currently six Confucius Institutes and 20 Chinese teaching posts
in 11 African countries.
China now grants tourist destination status to 26 African countries,
according to an action plan endorsed during the 2006 FOCAC Summit.
The number of Chinese tourists to Africa reached 110 000 in 2005, doubling
the 2004.
China's trade with Africa
Since 2000, China's trade with Africa has nearly tripled to US$39,8 billion
in 2005. China is now Africa's third largest commercial partner after the US
and France, and second largest exporter to Africa after France.
President Hu Jintao furthermore pledged to double aid to Africa in three
years by extending more credit and waiving tariffs on more of its exports, to
strengthen economic and political ties. The Chairman of the China Council for
the Promotion of International Trade said that a China-Africa Joint Chamber of
Commerce had been established to promote trade. Premier Wen Jiabao expressed
the belief that China Africa trade might rise to US$100 billion by 2010. It was
expected that the trade statistics for 2006 would reflect a rise in trade
between China and Africa of 26% to US$50 billion.
*TBA =The Beijing Axis � The China Analyst for Africa Nov 2006
Chinese officials believe Beijing can increase its oil and gas imports from
Africa, which currently supplies 30 percent of China's total imports. Angola
now has become China's largest supplier, shipping Beijing 522 000 barrels of
oil per day, and Chinese oil companies have taken stakes in 20 African nations;
over just the last five years, Chinese oil firms have spent $15 billion buying
up oil fields and local companies.
Although China's primary interest in Africa is energy, it has major
interests in other natural resources, particularly metals, food and timber.
China has supplied peacekeepers � to the DRC and Liberia � and election
observers to Ethiopia.
China plans to establish a free trade agreement with Africa. In 2004, China
spent approximately US$10 billion on African oil, accounting for nearly
one-third of its total crude imports (this is the equivalent to twice as much
of what was imported from Saudi Arabia). It is estimated that between 15 to 20
percent of Chinese energy needs are sourced from Africa.
Egypt
Egypt was the first country in Africa to recognise China and the two
countries celebrate their 50th anniversary of establishing diplomatic relations
in 2006.
During the FOCAC Summit in Beijing, November 2006, it was announced that
Citic Group, China's biggest state-run company, will build a US$938 million
aluminium smelter in Egypt. China and Egypt also agreed to strengthen
co-operation in the peaceful use of nuclear energy. In late September Egypt had
announced that it was re-launching its civil nuclear programme after a
suspension of 20 years following the Chernobyl disaster in 1986.
The next ministerial-level Forum on China Africa Co-operation (FOCAC)
meeting will be held in Cairo, Egypt, in late 2009. President Hu Jintao and
Premier Wen Jiabao visited Egypt in January 2004 and in June 2006,
respectively. Bilateral trade hit US$2,145 billion last year, up 36,1 percent
over the previous year.
Egypt was one of the first African countries to launch Chinese language
courses. Three Egyptian universities have Chinese language departments. Cairo
University has also established a Confucius Institute. Another 11 universities
are preparing to set up Chinese language departments. The Egyptian Ministry of
Education has acknowledged Chinese to be the second most popular foreign
language in high schools.
Ethiopia
Chinese companies have become a dominant force in building highways and
bridges. Power stations, mobile phone networks, schools and pharmaceutical
plants. Recently, the Chinese began exploring for oil and building at least one
Ethiopian military installation.
Equatorial Guinea
Chinese companies run a major timber operation and are trying to gain
influence in the oil sector. The president describes China as its main
development partner.
Gabon
China has announced its commitment to $3 billion for port, rail and a mining
investment in Gabon.
Ghana
China has announced its commitment to invest $600 million for a
hydroelectric dam in Ghana. During the FOCAC Summit in Beijing, November 2006,
it was announced that the ZTE had signed two US$30 million contracts to provide
phone equipment to Lesotho and Ghana, while Huawaei Technologies will help
Ghana set up village phone networks for US$30 million.
Guinea
Agricultural development co-operation
Lesotho
During the FOCAC Summit in Beijing, November 2006, it was announced that the
ZTE had signed two US$30 million contracts to provide phone equipment to
Lesotho and Ghana.
Liberia
It has been reported that China has medical workers and agricultural experts
working in Liberia. During the January 2006 visit by the Chinese Foreign
Minister an agreement was concluded to provide US$25 million towards Liberia's
reconstruction programme as well as an interest free loan of US$5 million over
10 years.
Mali
China cancelled the Mali debt of about US$68 million in 2001. During the
Chinese Foreign minister's visit in January 2006, he announced an economic and
technical co-operation agreement worth US$3,7 million.
Namibia
During December 2006 it was reported that an interest-free loan of R18,2
million had been granted by the People's Republic of China (PRC) to Namibia. In
terms of their agreement, the money will be used for projects and programmes
identified by the Namibian Government as per national development objectives.
The visit to Namibia by a Chinese Commerce Ministry delegation and the
interest-free loan is a follow-up on the FOCAC Summit that was held in Beijing
at the beginning of November 2006. During the visit it was further decided that
the Namibian Government also make use of the already offered in 2005,
interest-free loan of R44,9 million to implement small industries projects and
small-scale farming units. The Chinese also offered to provide financial
assistance for the construction of primary schools in rural areas. Discussions
also focused on granting of tariff-free access for Namibian products into the
Chinese market.
Nigeria
China is rebuilding Nigeria's railroad network. Nigeria is China's
third-largest African trading partner after SA and Egypt and has announced its
commitment to $8,3 billion for infrastructure development projects in a range
of sectors, including oil.
China's top offshore oil and gas producer, CNOOC, announced a US$2,7 billion
overseas acquisition for a 45 percent stake in a major offshore field in
Nigeria early in 2005. A further 21 Chinese firms plan to invest in a Nigerian
industrial park following favourable tax holidays and the commencement of the
Free Trade Zone recently announced by Nigeria.
It has furthermore been reported that Nigeria has approached a Chinese
company, Great Wall Industry Corporation, to launch a satellite for it next
year. The deal will reportedly be worth US$200 million.
During the FOCAC Summit in Beijing, November 2006, it was announced that
China Civil Engineering will build a US$300 million highway in Nigeria.
Rwanda
Chinese companies have paved more than 80% of the main roads. Chinese
companies are searching for oil and gas and rebuilding electricity grids and
telephone networks.
Senegal
During his visit to Senegal in January 2006, the Chinese Foreign Minister
announced the cancellation of US$18,5 million in debt, and offered US$3,7
million in funding for hospitals, roads, and other infrastructure, as well as a
grant of US$200 000 to the victims of flooding of last year. This visit was the
first high-level visit since the resumption of diplomatic relations between
Senegal and China � Senegal cut its diplomatic links with Taiwan in October
2005.
Sudan
China invested more than $2 billion in Sudan's oil industry. Sudan provides
China with nearly 5% of its annual oil imports. China National Petroleum
Company has acquired a 40 percent stake in one of Sudan's major oil exploration
projects and Chinese workers built a 1 600 kilometre long pipeline in Sudan in
just 11 months.
Zambia
In Zambia, Chinese contractors have won a contract worth $600 million to
build a hydroelectric plant at Kague Gorge.
Chinese companies own one of Zambia's largest copper mines. During the FOCAC
Summit in Beijing, November 2006, it was announced that China Nonferrous Mining
will build a US$200 million copper smelter in Zambia. The venture, at the
Chambisi mine, will turn copper concentrates into 150 tons of copper annually
for export to China.
Zimbabwe
Last year, Zimbabwe bought three passenger planes, six trainer jets, and
nearly 400 commuter buses from China, in a deal reportedly worth US$200
million. Trade and tourism ties between China and Zimbabwe have been
flourishing in recent years and China is now its second largest trading
partner, after South Africa (Up from 11th in just three years). A growing
number of Chinese citizens are now travelling to Zimbabwe to enjoy the many
tourist attractions that the country has to offer. The increased trade and
tourism ties between Zimbabwe and China have resulted in the announcement of
twice-weekly direct flights between Harare and Beijing. China is already the
largest buyer of Zimbabwe's tobacco. Chinese companies are also looking at
Zimbabwe's lucrative mineral extraction industry.
A Chinese trading company owned by two large Chinese aerospace concerns
recently signed a $300 million contract to rebuild Zimbabwe's electricity
grid.
China also owns a cement factory in Zimbabwe.
In June it was announced that Zimbabwe had signed a US$1,3 billion deal with
China to set up coal mines and three thermal power stations. All the projects
will be located at Dande, 200 kilometres west of Harare. In exchange, Zimbabwe
will provide China with chrome.
During November 2006 it was reported, according to the Zimbabwean Herald
newspaper, that a takeover of Zimbabwe Iron and Steel Co. (ZISCO) is possible
by Metallurgical Corporation of China (MCC) as they have reportedly offered
US$3billion to buy a 60 percent stake in ZISCO.
South Africa � China Bilateral Relations
Premier Wen Jiabao's official visit to SA (21-22 June 2006)
At the invitation of President Thabo Mbeki of the Republic of South Africa,
Premier Wen Jiabao of the State Council of the People's Republic of China paid
an official visit to the Republic of South Africa from 21 to 22 June and held
talks with President Thabo Mbeki.
The two sides reviewed the principles guiding the bilateral relationship set
out in the Pretoria Declaration on the Partnership between the People's
Republic of China and the Republic of South Africa in 2000 and the strategic
partnership established by the two countries in 2004.
The two sides agreed to increase co-operation in the following priority
areas:
The political field
1. The two sides will keep high-level contacts and exchange views on
bilateral relations and international and regional issues of mutual interest in
an in-depth and wide-ranging way.
2. The two sides will give full scope to the role of the Bi-National
Commission as the pre-eminent structure in advancing their bilateral
relationship, in promoting exchange and co-operation between China and South
Africa in all fields and conduct regular review of such co-operation to ensure
the full implementation of bilateral co-operation agreements. New sectoral
committees may be set up as necessary.
3. The two sides will strengthen the exchange and co-operation between the
two countries' legislative bodies, explore the possibility of establishing a
mechanism for such exchanges on a regular basis and work to put this mechanism
in place as soon as possible.
4. The two sides reaffirmed that they share common views and positions in
promoting multilateralism and democracy in international relations and
upholding the common rights and interests of developing countries. They called
for greater international attention to African issues. The two sides will make
full use of the diplomatic sectoral committee of the Bi-National Commission
between China and South Africa to hold regular strategic dialogue and
strengthen consultation and co-ordination in the United Nations System, wider
international organisations and at major multilateral events.
Both countries confirmed their commitment to strengthening the role,
capacity, effectiveness and efficiency of the United Nations as well as to
improve its performance in order for it to realise its full potential in
accordance with the purpose and principles of the UN Charter.
They expressed their support for those proposals of the Secretary-General
that would help to strengthen the ability of the United Nations to implement
its mandates and effectively deliver on all its programmes. Both countries also
undertook to work with the Secretary-General and the President of the General
Assembly to achieve the reform of the United Nations within the
inter-governmental framework that the organisation provides.
The two sides furthermore remain committed to the implementation of the
outcomes of all the major UN conferences and summits, including the 2005 World
Summit Outcome and expressed concern at the slow progress in the implementation
of those decisions relating to development and the strengthening of the
Economic and Social Council.
Both countries also noted that the reform and enlargement of the United
Nations Security Council to make it more representative was long overdue and
stressed the need for Africa to be represented in a permanent category. They
agreed to continue to exchange views and work together on this important
matter.
5. In this regard, the Chinese side undertook to support the work of the
African Union Peace and Security Council.
6. The Chinese side valued and supported the New Partnership for Africa's
Development and will strengthen co-operation with Africa, and in particular the
NEPAD Secretariat, in priority areas identified in NEPAD and under the
framework of the Forum on China-Africa Co-operation to help Africa achieve
independent development.
Science and technology
7. The two sides will strengthen co-operation in key areas such as
communications technology, agricultural technology, information technology,
nanotechnology, new materials, renewable energy, clean technology, mining
technology, and mining safety technology. The two sides encourage companies
from both countries to undertake bilateral co-operation projects on science and
technology. They encourage the relevant institutions and companies from both
countries to attend exhibitions on innovation in science and technology held in
both countries and enter into Research and Development (R&D) co-operation
at a higher level.
8. The two sides encourage bilateral co-operation in technology and
investment in coal liquefaction, peaceful use of nuclear energy, mineral
resources, and safety management of mines. They encourage mutual investment and
technology exchanges between companies from both countries.
9. The two sides resolve to enter into co-operation in order to ensure the
protection of intellectual property rights.
Cultural and other exchanges and social development
10. The two sides will promote exchange and co-operation in public health
and medical sciences in the following priority areas: public health service and
bio-medical research, primary healthcare and family medicine, quality control
of healthcare and standards for practising medicine, education in traditional
medicine, training and research, healthy way of life, pharmaceuticals
management and particularly management of traditional medicine, first aid and
AIDS treatment, recruitment of medical personnel and human resources
development.
11. They will share experience of holding major sports events such as the
Olympic Games and the World Cup.
12. China is ready to provide assistance to the best of its ability in human
resources development, including skills training, capacity building and Chinese
language teaching. The Chinese Government will continue to provide special
assistance in human resources development for priority areas in the human
resources development identified in AsgiSA. It will give active consideration
to providing more government scholarships to South African students for
studying in China and setting up a skills training centre in South Africa. It
will continue to invite South African government officials and technical
personnel to China for training. Over the next three years, China will train
300 personnel for South Africa in economic and administrative management, civil
engineering and Chinese language tour guides.
13. The government labour regulation and social society departments of the
two countries will share experience and expand co-operation in training, job
creation, labour market development, fostering harmonious employment relations
and improving social security systems.
Bilateral Economic Relations
Since the establishment of diplomatic relations in 1998, trade between China
and South Africa has grown significantly, with China becoming South Africa's
2nd largest import trading partner in 2005, comprising 9% of total imports and
8th largest export partner, comprising 3% of total exports from South
Africa.
In fact both imports and exports grew 30% in 2005 compared to 2004. China
still enjoys a massive trade surplus with SA - in 2005 imports from China
totalled R31,476 billion, while exports came to R8,763 billion. There is a
sizeable trade imbalance in favour of China in our bilateral trade.
During the FOCAC Summit in Beijing, November 2006, it was confirmed that the
Chinese parastatal company Sinosteel was committed to investing in a US$230
(R1,7 billion) ferrochrome mine and smelter project with South Africa's
Samancor.
In September 2006 the Chinese Zijn Mining Group (Gold Mining) announced that
it was buying a stake in Ridge Mining, with a view to the development of
Sheba's Ridge (nickel and platinum), jointly owned by Anglo Platinum and the
Industrial Development Corporation (IDC). This represents an investment of
approximately R120 million.
South African investments in China amount to US$400 million including
investments by Anglo American (funds from the United Kingdom though), SAB
Miller, MIH, and a US$120 million investment by property group LRPS.
The impact of Chinese exports to South Africa in the clothing and textiles,
and leather and footwear industries are the subject of intense debate. Suffice
to mention that South Africa had to negotiate a special deal with China to
limit their textile exports to South Africa for a period to enable the SA
textile industry to restructure. This voluntary restraint will commence in
January 2007.
In April 2006 McCarthy, the automotive division of Bidvest Group, announced
that they will introduce a range of fully imported Chinese vehicles on to the
South African market during 2007.
In June 2006 Mining Weekly reported that an SA-Chinese Consortium had
clinched a R2 billion shipyard contract by the National Ports Authority (NPA)
to set up a ship repair facility at Richards Bay. The consortium is headed by
Imbani Projects of South Africa.
Chinese companies in South Africa
Chinese companies in South Africa have invested in the following sectors:
commercial banking, consumer electronics, telecommunications equipment,
shipping, light manufacturing, automobiles, mining, mining accessories, and
housing construction.
Of the four Chinese banks in South Africa, the China Construction Bank has
the largest local operation with almost R1 billion in assets. Both it and the
Bank of China have a significant majority of their deposits denominated in
foreign currency. The biggest portion of both banks' lending activity is also
denominated in foreign currency and is extended to the South African Reserve
Bank, non-resident banks and non-resident clients. The remaining two banks,
Export/Import Bank of China, a state-owned trade financing institution, and
China Everbright Bank, a commercial bank with some private ownership, have
representative offices in South Africa but no formal operations. The
Export/Import Bank has made loans totalling approximately US$2,5 billion in
Zambia and Angola over the last two years.
Chinese involvement in the South African light manufacturing sector is
through the SOE Shanghai Industrial and its local subsidiary Shanghai
Industrial Investment Corporation (SIIC). This company is invested in 14 other
enterprises, the majority of which were in KwaZulu-Natal.
The largest joint venture operation involving a Chinese company is ASA
Metals in Polokwane. Chinese company Sinosteel, a raw materials supplier and
sales agent for major Chinese steel mills, has partnered with the Limpopo
Province Development Corporation in a project that is mining 400 000 tonnes of
chrome ore per annum and producing 120 000 tons per annum of ferrochrome from
an on-site smelter.
COSCO, a Beijing-based global shipping company, and First Automotive Works,
a 2005 Fortune 500 vehicle manufacturer, are two examples of Chinese companies
using South Africa as a base for their regional activities. COSCO Africa has a
55 percent share in a joint venture with Rennies called Cosren Shipping Agency
and also manages COSCO Group's operations in Southern and Western Africa. FAW
has an assembly plant in Gauteng where it assembles trucks and buses for the
Southern African Development Community (SADC) market. Its sales programme
extends as far as Uganda. FAW South Africa's company slogan is "China's Gateway
into Sub-Saharan Africa."
During November 2006 South African ferro-chrome producer Samancor Chrome
announced that they had signed two finance and production deals with Chinese
firms. One agreement was with China Development Bank and state-owned steel and
metals trader Sinosteel, inked at the recent FOCAC trade summit in Beijing. The
deal created a strategic partnership in which the bank would provide money for
future expansions of ferro-chrome production in South Africa. A second
agreement was between Samancor and Sinosteel under which Samancor would create
a company, Tubatse Chrome, to own a chrome mine that fed five existing furnaces
in South Africa, then sell 50 percent of that company to Sinosteel. Tubatse
would have ferro-chrome capacity of 280 000 tonnes per year. China has become a
big investor in mining and natural resources in Africa as it seeks the raw
materials to feed its economic growth.
Huawei Technologies, a diversified electronics company and perhaps China's
most global, has 30 branch offices in Africa and over the past 2 years in
Kenya, Nigeria, and Zimbabwe.
Questions and answers
Question: Deputy Minister Pahad, you say it is becoming an increasing
phenomenon of South Africans being deported. What advice would you have for
South Africans travelling abroad?
Answer: It is very difficult to advise South Africans on how to proceed
since this is not a transparent process. It is now increasingly common that
South Africans who have been regularly travelling to the US are now being
disallowed entry.
We are not sure on what basis these decisions are taken. We have asked the
US authorities, using the Habib case as an example, for more information in
this regard. We have not had any response to this matter.
Unless we have a multilateral system in place to deal with this matter,
increasing numbers of South Africans may find themselves on some listing.
What I can suggest is that South Africans check with the Embassies of the
countries to which they will be travelling.
Question: Deputy Minister, regarding the matter of South African troops to
Somalia � has a decision been taken? There are reports that the Ethiopian
forces are withdrawing although the Somali government is denying this.
Answer: We expect that the Minister of Defence, having had discussions and
analysed our resources will brief President Mbeki in the next few days on our
capacity to contribute forces for the AU Mission.
This will inform Cabinet's decision on whether South Africa will be able to
provide troops to the AU Mission or not.
Question: Deputy Minister Pahad, is Somaliland on the agenda of the African
Union later this week?
Answer: This is a very complex situation. We do have the report of the AU in
this regard. I do believe we should begin to study this AU report and through
the AU structures see what the consequences of this report can be.
The Transitional Authority has also made a statement that Somaliland is part
of the broader Somalia. This has led to widespread demonstrations in
Somaliland.
We will have to deal with this matter within the AU and I do hope this
matter can be discussed at a convenient time.
Question: Deputy Minister Pahad, what is South Africa's position regarding
the US military build-up in the Persian Gulf and Iraq? Also, Mr Larijani,
Iran's chief negotiator was invited by your government to have discussions in
South Africa. Is this visit still on? Does it indicate that South Africa will
be playing a greater role in this situation?
Answer: We will do a more extensive briefing on the Middle East next week.
Mr Larijani was scheduled to visit South Africa � but as you are aware, our
programme is very full at the moment. We are looking for mutually convenient
dates for Mr Larijani and President Mbeki. This will be an important visit
since we will be able to get a sense of Iran's position regarding the nuclear
issue. Only yesterday the European Union has indicated they are considering
imposing sanctions even more serious than those imposed by the UN. Yes, we
would want Mr Larijani to come at a convenient time and we hope it will be
soon.
Question: Deputy Minister Pahad, is Somalia on the agenda of the Cabinet
Lekgotla at the moment?
Answer: Somalia is constantly discussed at a government level. We did
discuss it at the Lekgotla and during the International Relations Peace and
Security (IRPS) Cluster presentation. As I have said, Minister Lekota will
brief the President in the next few days.
Question: Deputy Minister Pahad, this "hold" that will be placed regarding
the Docrats � what does this mean, is it indefinite and with whom are you
consulting on this matter?
Answer: We must discuss with the US authorities at various levels since the
Docrats are being listed at their request. The US has given notice that,
irrespective of processes in the Security Council, they will list the Docrats
on their own domestic terrorist list. This action will have serious
consequences for the individuals concerned.
Lawyers for the Docrats have informed us, through the media, they are
submitting documents to Foreign Affairs and to the Minister of Intelligence. We
are not in possession of these documents. They may indicate why the Docrats
have been listed.
Let me say, South Africa's position on the fight against terror is
unequivocal � we are signatories to most of the UN and AU conventions on
terrorism � we are committed to fighting terrorism where ever it may occur in
whatever manifestation.
Our putting a hold on these names does not mean we are soft on terrorism �
we just want to be certain that those listed have been listed legitimately.
Listed people, in terms of the 2004 law, could challenge any decisions taken in
terms of listings in other countries. We must ensure we are not bogged down by
expensive litigation in this regard.
Indeed, the Minister of Foreign Affairs has today indicated that we will
place a hold on these names while discussions continue.
Question: Deputy Minister Pahad, you have mentioned that South Africans are
increasingly finding themselves the victims of unforeseen deportations. Do you
have numbers in this regard? Will you discuss this in any multilateral forum
where you can get more answers?
Answer: I am not sure if only South Africans are being targeted in this
regard or that this is an anti-South African campaign. I want to believe that
in the last few years, there has been a tightening of entry requirements into
the European Union, the US and other countries.
We do know that since 9/11 we receive many more reports of South Africans
being unceremoniously deported without due cause. We get constant letters from
various Islamic organisations. We are not able to collate the number and have
asked the organisations to assist with giving us a consolidated report of these
instances of deportation.
Clearly, there is a perception that there is a targeted action against South
Africans of Islamic Faith. Whether this is true or not, we do not know.
We do not intend raising this in any multilateral forum. It is for us to
raise it bilaterally with the countries where this is happening.
As I have said, it is very difficult to understand why an Executive Director
of the HSRC, who has been travelling regularly to the US for many years, is now
targeted and refused entry.
Question: Deputy Minister Pahad, can you indicate what Presidents Mbeki and
Hu Jintao will discuss? Will any agreements be signed?
Answer: Yes, we will sign the following agreements:
* Protocol on Phyto-Sanitary requirements for the export of pear fruit from
China to South Africa
* Protocol on Phyto-Sanitary Requirements for Export of Table Grapes from South
Africa to China
* Protocol on Phyto-Sanitary Requirements for the Export of Apple Fruit from
China to South Africa
* Protocol on Phyto-Sanitary Requirements for the Export of Tobacco-Leaf from
the China to South Africa
* Agreement between South Africa and the PRC on Co-operation in the Minerals
and Energy Sector
* Memorandum of Understanding regarding the establishment of the South
Africa-China Minerals and Energy Sectoral Co-operation Committee
* Agreement on Economic and Technical Co-operation between South Africa and the
PRC.
We will also discuss global matters � we are now on the Security Council �
we will have to discuss our common approach to many of the issues that will
arise during the next few months � on the African continent, Kosovo, the Middle
East.
But most importantly we want to discuss the broader political issues and how
to implement the economic agreements to give concrete expression to the
commitments undertaken by the Chinese government at the FOCAC. We must develop
this developmental approach quoted by the Chinese official. Discussions will be
political and economic.
Question: Deputy Minister Pahad, are there any new developments regarding
the refuge sought by the Burundian leader in your Embassy in Burundi?
Answer: The leader of the ruling party of Burundi has taken refuge in our
Embassy. He said he attended at a meeting at the Embassy and upon conclusion he
found that his bodyguards had been changed. Being familiar with the underground
structures, he perceived this to mean an assassination on his life was
imminent. He therefore took refuge in our Embassy.
It is expected that he will meet with the President this afternoon and the
matter will be resolved. But it is also clear that incidents such as these
prevent the final touches to be added to the implementation of the peace
process.
It is also clear that new dimensions are being added to the Burundian
political climate. We must maintain the progress made until now.
Question: Deputy Minister Pahad, I heard your explanation regarding your
vote on Myanmar. Will the South African government, outside of this, condemn
human rights abuses in Myanmar?
Answer: Before and after we came to government, we consistently called for
an approach that would make a break through in finding a political solution in
Myanmar.
There are many reports from governments, non-governmental organisations
(NGOs), etc, that indicate the levels of violence in Myanmar, the human rights
violations, reports of forced labour.
We are quite keen that these matters be addressed.
For example, on the abuse of labour, we hope that the International Labour
Organisation (ILO) of which South Africa is the current chair � will be able
take this matter up.
We hope issues of violations of human rights must be taken to the relevant
structures with the mandates to deal with these matters so that we can
determine a way forward.
We are in contact with Association of South East Asian Nations (ASEAN)
countries to try to get a sense of what more they can do to bring more pressure
� and I say pressure in its total manifestations, discussions, etc � to ensure
that ASEAN as the regional body can play an increasingly prominent role in
addressing the situation in Myanmar. We will continue to be critical of the
situation that has arisen in Myanmar and we will continue to support
initiatives through the relevant structures.
Issued by: Department of Foreign Affairs
24 January 2007
