Dar es Salaam. President Barack Obama, in his
new bid to overtake growing Chinese influence in Tanzania and East
African region as whole, is coming up with billions of dollars in aid
and trade promotion—but with the usual Washington’s approach of carrot
and stick.
China came with a simple theory: Give us what we
need and in return, you have aid, soft loans and trade pact—with no
meddling in domestic politics let alone talking about gay rights,
democracy and human rights.
According to a report by The East African
newspaper, while East African presidents and business leaders emphasised
in Washington last week that the region was open for business, not aid,
President Obama said that the US wanted to be an “equal” partner in
Africa’s growing success—a move aimed at putting in check China’s power.
“We don’t simply want to extract minerals from the
ground for our growth; we want to build genuine partnerships that
create jobs and opportunity for all our peoples and that unleash the
next era of African growth,” President Obama told the forum, which
included 50 African heads of state.
According to a report by regional newspaper, one
of the tempting outcomes for five East African countries is President
Obama’s pledge of $300 million in assistance per year to expand the
reach of Power Africa in pursuit of a new, aggregate goal of 30,000MW
which has, reportedly, already mobilised more than $26 billion.
During the just-ended summit, American leaders
marketed the US as offering the best partnership to Africa with
President Obama’s aides describing China’s dealing in Africa as a
“patron” relationship.
The Obama administration accused the over 800
Chinese firms operating in Africa of refusing to employ local skills
while flying in Chinese nationals to do jobs that locals could handle.
US Vice President Joe Bidden, in an apparent swipe
at China, said: “America is proud of the extent to which our investment
in Africa goes hand-in-hand with our efforts to hire and train locals
to foster economic development and not just to extract what’s in the
ground.” But, the sudden shift of Washington policy toward Africa, is
also viewed suspiciously—with some asking: why now? The suspicion is
evidenced by various articles, both analyses and opinions published by
regional media after the US-Africa Summit.
For instance on Sunday, Rwanda’s New Times
newspaper, which is very close to President Paul Kagame’s regime, put it
this way: “Figuratively put, Africa is enjoying a stable relationship
with China when the USA, a returning ex-boyfriend, with renewed
interest, shows up promising paradise”
The New Times in a story headlined, ‘US-Africa
Summit: How East Africa will benefit’, wrote: “Choices have to be made
but who should Africa trust between China and US? Is the US a new
admirer or a returning ex-boyfriend with renewed interest who now wants
his partner back?”
Various commentators noted that America’s new
engagement with Africa is not voluntary but rather, a partnership forced
by China’s deepening influence on the continent.
From Washington, Tanzania and Kenya would benefit
from the $27 billion power Africa pact to finance power projects in gas,
geothermal, coal and hydro power. Tanzania, Uganda and Rwanda are also
included in a $110 million pledge for peacekeeping in Somalia, South
Sudan and Central African Republic. Other peacekeeping beneficiaries are
Ghana, Senegal, and Ethiopia.
Tanzania is also the biggest recipient of Millennium Challenge Account, which has helped the country improve power production during the past few years and the second phase worth millions of dollars is due for takeoff in few months
Tanzania is also the biggest recipient of Millennium Challenge Account, which has helped the country improve power production during the past few years and the second phase worth millions of dollars is due for takeoff in few months
Rwanda sealed a deal with Symbion Power for a 50MW
Lake Kivu methane gas plant and a promise of US military action against
the FDLR rebels if they do not surrender by the end of the year.
Symbion currently operates various power projects in Tanzania.
At the same time, Chinese were keenly monitoring
the just ended summit in Washington well knowing that someone is
plotting for their cake in East Africa—putting the region in the eyes of
two global powerful ‘suitors’ whose appetite goes beyond trade and aid.
Just after the US-Africa Summit, the
Beijing-based Global Times newspaper published an article noting that
China gives what Africa wants—trade and respect.
According to data published by the UK’s Guardian
newspaper, China has so far financed 62 projects in Tanzania through
soft loans and aid including the Mtwara-Dar es Salaam gas pipeline
funded at the cost of $1.3 billion, while in Kenya, Beijing has financed
a total of 65 projects that also include the construction of Lamu Port,
Standard Gauge Railways and expansion of Mombasa port. China has also
financed 53 projects in Uganda, 56 projects in Rwanda, and 22 projects
in Burundi.
Tanzania is so far number two in terms of loans
and aid which by the end of last year reached $5billion, while Kenya
tops the list in the region after both President Mwai Kibaki and his
successor, Uhuru Kenyatta, decided to embrace the dragon.
Why the EA region
The East African region, is attracting two major
economic and military giants, China and US, mainly because of its vast
natural resources and strategic locations for security in Africa.
For instance, Tanzania has discovered natural gas
valued at $600 billion—enough to lure investors from both China and US.
Apart from natural gas, the country is also rich in terms of minerals
including gold, diamond, coal, nickel, uranium etc.
Strategically, Tanzania is a crucial ally to
Washington because of its stability and political influence in East and
Southern African region.
Kenya has recently announced a major discovery of
oil, a commodity always wanted by US and Chinese companies, though
Washington has more oil reserve than any country in the world.
Strategically, Kenya is a crucial ally because of the horn of Africa,
Sudan and South Sudan.
Bloomberg News Channel reported last year that
Kenya’s deposits could top 10 billion barrels, more than three times the
UK’s remaining reserves. Kenya is set to start shipments in 2016,
overtaking neighboring Uganda, where Tullow Oil found crude more than
seven years ago.
Uganda, which discovered oil in 2007, is also a crucial ally of
US mainly because of the situation in DR Congo, Central African Republic
and South Sudan. Rwanda, has no vast natural resources, but is always
viewed as a crucial military ally to US when it comes to the politics of
DRC.
While America’s interest always goes beyond trade
and aid, China’s appetite is natural resources mainly minerals, oil,
gas and coal to sustain its fast growing economy. In Dar es Salaam, last
year, President Xi jinping said China sincerely hopes was to see faster
development in African countries and a better life for African people.
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