Friday, May 23, 2014

US-China-Africa Cooperation Case Studies


 
Here in Washington, I am asked a lot by people at USAID and the World Bank: why is it so hard to cooperate with China in Africa? Usually the person asking the question has in mind doing a foreign aid/development project together. It's not always clear exactly what the purpose of such cooperation is -- and I suspect that usually the subtext is "we need to teach the Chinese how to be better donors." I am collecting examples of US-China-Africa cooperation that already exist. Usually these are commercial deals where cooperation has a business rationale. This is an excellent, and more sustainable way to go.

Here's the kind of example I'm looking for:
China, Ethiopian Airlines to finance purchase of Boeing Aircraft by reporter Kaleyesus Bekele: This deal is still at an early MOU stage, but as the article notes, if it goes forward, it would involve a financing facility of $500 million from China's largest bank, ICBC, provided through a leasing vehicle, to Ethiopian Airlines, so that they could buy Boeing aircraft. Boeing, a US company, and China are "old friends". According to Boeing, more than 50 percent of the commercial jetliners operating in China are Boeing airplanes. Apparently ICBC has already been involved as a junior partner in another aircraft financing deal for the B777-200LR freighter in Ethiopia. This marks additional maturing of the China-Africa financial relationship. And it's the kind of tripartite cooperation that's likely to endure.

If anyone knows of other examples like this, please contribute.

A h/t to the Centre for Chinese Studies, Stellenbosch University.
ICBC was already a junior loan partner in the B777-200LR freighter deal - See more at: http://www.geeskaafrika.com/china-ethiopian-airlines-to-finance-boeing-aircraft-purchases/3456/#sthash.U2mbfXvn.dpuf

3 comments:

  1. Previously such aircraft deals would have been done by the US EXIM Bank, but seems that Ethiopia prefers ICBC in China , maybe the rates are better !

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  2. "... we need to teach the Chinese how to be better donors... "

    Deborah,

    When I read that sentence I almost fell out of my chair !

    If USA has been such a "wonderful donor" why is it that Africa has remained so under-developed ?

    I mean, before the current push from China into Africa, for more than 60 years (since the late 1940's) Africa had been receiving all kinds of "donations" and/or "aids" from the Western countries, and for 60 years the West has been intentionally retarding the development of the African continent

    Furthermore, the West has purposely structured their programs to make the Africans so ever more relying on the Western aid

    Instead of helping the African to farm, the West gave them food

    Instead of setting up factories (or helping Africans setting up their own factories) the West sent Africa with all kinds of gadgets

    Instead of helping Africa getting educated and keeping the brains INSIDE Africa, the West has been actively encouraging the brainy Africans to move to the West - thus leaving the people in the African continent backward

    Are these the way the Americans want to teach the "Chinese", on "how to be better donor" ??

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  3. Deborah,

    You may want to read a new report by Bloomberg

    http://www.bloomberg.com/news/2014-06-02/china-swaps-gusto-for-rigor-in-africa-as-it-learns-from-mistakes.html

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