Pohamba to attend US business summit at Cape

PRESIDENT Hifikepunye Pohamba left for South Africa yesterday to attend a business summit of African countries with the United States in Cape Town.

Pohamba and his South African counterpart, President Thabo Mbeki, will address the summit today. It is the first time the bi-annual summit takes place on the African continent.For two days African and US business leaders discuss ways to increase investment in the world’s poorest continent, but experts say corporate America may have already lost critical ground to investments from China and India.Business leaders are to discuss trade, energy, infrastructure and investment opportunities in Africa, but many analysts say US companies are lagging far behind cash-flush Chinese firms that are leading a new rush into Africa.”This is (an) economic scramble for Africa,” said Jasper Okelo, an economist at the University of Nairobi, according to Reuters news agency.US firms, including oil giants Chevron and Exxon Mobil and soft-drink maker Coca-Cola, are attending, said the Corporate Council of Africa.In 2006, Africa’s foreign direct investment inflows were US$38,8 billion, with Nigeria and Egypt making up the biggest shares, according to data from UNCTAD, the United Nations’ trade and development agency.China, however, is seen as the emerging power in Africa.The Asian giant has invested billions, often in the form of credit and loans, in African economies in an effort to back its credentials there as an emerging economic superpower.Two weeks ago ICBC, China’s biggest lender, announced to buy a fifth of Standard Bank, South Africa’s biggest banking group, for US$5,6 billion in cash.This underscored China’s determination to play a leading role in African markets.It would be the biggest overseas acquisition by a Chinese bank and the largest foreign investment in Africa if approved by Standard Bank shareholders.”There are concerns that China in particular has moved in very swiftly into key areas where the US and other key players were hesitant to go,” said Trudi Hartzenberg, director of South Africa’s Trade Law Centre.But China’s overseas expansion has been criticised by human rights groups and others in the West, who argue that Beijing often turns a blind eye to abuses and corruption in its chase for assets and commodities, especially in Africa.Some experts believe the summit may lead to investment opportunities, especially in the agriculture and oil.”There is a lot of good that could happen for Africa especially if the businesses that are represented in the Corporate Council on Africa pay more attention to this region,” said Michael Chege, economic advisor at Kenya’s Ministry of Planning and National Development.Leon Myburgh, sub-Saharan specialist at Citigroup, said how local economies benefited from foreign direct investment was more important for Africa than the nationality of investors.He said there was “huge scope” for foreign investments in Africa.But critics of the law argue that US government subsidies to American farmers keep African agricultural producers mired in poverty, outweighing any real benefits the trade initiative offered.Additional reporting by ReutersIt is the first time the bi-annual summit takes place on the African continent.For two days African and US business leaders discuss ways to increase investment in the world’s poorest continent, but experts say corporate America may have already lost critical ground to investments from China and India.Business leaders are to discuss trade, energy, infrastructure and investment opportunities in Africa, but many analysts say US companies are lagging far behind cash-flush Chinese firms that are leading a new rush into Africa.”This is (an) economic scramble for Africa,” said Jasper Okelo, an economist at the University of Nairobi, according to Reuters news agency.US firms, including oil giants Chevron and Exxon Mobil and soft-drink maker Coca-Cola, are attending, said the Corporate Council of Africa.In 2006, Africa’s foreign direct investment inflows were US$38,8 billion, with Nigeria and Egypt making up the biggest shares, according to data from UNCTAD, the United Nations’ trade and development agency.China, however, is seen as the emerging power in Africa.The Asian giant has invested billions, often in the form of credit and loans, in African economies in an effort to back its credentials there as an emerging economic superpower.Two weeks ago ICBC, China’s biggest lender, announced to buy a fifth of Standard Bank, South Africa’s biggest banking group, for US$5,6 billion in cash.This underscored China’s determination to play a leading role in African markets.It would be the biggest overseas acquisition by a Chinese bank and the largest foreign investment in Africa if approved by Standard Bank shareholders.”There are concerns that China in particular has moved in very swiftly into key areas where the US and other key players were hesitant to go,” said Trudi Hartzenberg, director of South Africa’s Trade Law Centre.But China’s overseas expansion has been criticised by human rights groups and others in the West, who argue that Beijing often turns a blind eye to abuses and corruption in its chase for assets and commodities, especially in Africa.Some experts believe the summit may lead to investment opportunities, especially in the agriculture and oil.”There is a lot of good that could happen for Africa especially if the businesses that are represented in the Corporate Council on Africa pay more attention to this region,” said Michael Chege, economic advisor at Kenya’s Ministry of Planning and National Development.Leon Myburgh, sub-Saharan specialist at Citigroup, said how local economies benefited from foreign direct investment was more important for Africa than the nationality of investors.He said there was “huge scope” for foreign investments in Africa.But critics of the law argue that US government subsidies to American farmers keep African agricultural producers mired in poverty, outweighing any real benefits the trade initiative offered.Additional reporting by Reuters