The new kid on the African block has money to spend

Interviewed last night on CNN, former President Bill Clinton praised Rwanda for its increase from $1 to a present $5 in per capita daily income, a great increase in paved roads and the nation’s parliament, more than 50 percent of whom are women. The country, Clinton said, has made tremendous progress since factions stopped killing each other. One word I did not hear Clinton say: China.

“Despite the financial crisis, bilateral trade between China and Rwanda still exceeded $100 million in 2009, increased by 6.4% over the previous year. In 2009, Chinese companies contracted projects totaling $500 million. At present, 4000 items exported from Rwanda to China enjoy zero-tariff treatment. New projects, such as the Kigali International Conference Center and water plant are currently under negotiation. In order to attract more Chinese companies to invest in Rwanda, China and Rwanda plan to sign a number of bi-lateral agreements including the Bilateral Investment Protection Agreement and Agricultural Technological Cooperation Agreement.

“Rwanda expects increased investment in its minerals industry following the suspension of mining in some parts of the neighbouring Democratic Republic of Congo. Since the Congolese ban, mining companies in Rwanda have started boosting production.

“Rwanda currently produces about 5% of the world's tantalum and about 4% of global tungsten production. Minerals currently account for in the region of 30% of Rwanda's exports, according to the OGMR. Exports of minerals were expected to increase to $60 million in 2010, from $54.6 million in 2009.”

http://www.mbendi.com/land/as/cj/p0060.htm

“Last week, the US$ 6 million China-Rwanda Agriculture Technology Demonstration Center expected to spearhead modern agriculture technology and demonstration as a way of improving agricultural output was officially opened by Prime Minister Pierre Habumuremyi.

“At this centre, a result of the 2006 Forum for China-Africa cooperation (FOCAC) held in Beijing, Chinese experts will teach locals the technique of growing upland rice, bamboo, paddy rice and mushrooms etc. They will also train local farmers on simple modern ways of dealing with soil erosion, a major challenge in this hilly country.”

http://allafrica.com/stories/201204301241.html

“Chinese firms are increasingly making strategic entries into Kigali, targeting mainly infrastructure projects. China will send an expert group to Rwanda for a feasibility study of a 25km road construction project in the capital city of Kigali, financed by the Chinese government.

“Chinese engineers are also expected to construct a new ultra-modern clinic in Masaka, a suburb of Kigali.”

http://rw.china-embassy.org/eng/xwdt/t856391.htm

China is building roads, hospitals and schools all over sub-Sahara Africa. There will be payback, in form of oil sales and mineral sales, which will benefit China and the countries involved. China has learned to make more meaningful inroads through exporting money and expertise, rather than AK-47s.