• Chinese, Nigerian presidents satisfied with bilateral ties • Pang Yuliang Acquired German Parchim Airport

investment promotion in just the past one year. We recognize that much more needs to be done and in the years to come the government will seek to do more to improve the investment climate of Liberia. I identified seven key areas that I believe the government will have to focus on:
1. Improving the basic infrastructure of our nation, roads and ports.
2. Providing a more objective and less discretionary regime in granting of incentives, giving emphasis to priority areas that feed and employ our population on a large scale such as agriculture and export-oriented manufacturing.
3. Improve the skills capacity and basic literacy of our workforce in order to better serve the needs of investors and attract investment in areas such as information technology.
4. Improve the regulatory environment through a speedy revision of the Investment Code enshrining basic investment protections such as non-expropriation of investment.
5. Engage in more international agreements that foster trade and investment such as AGOA and GSP, but also negotiating bilateral tax, trade and investment treaties which are very important to many investors.
6. Government may need to establish a Land Commission to examine all aspects of the country's land tenure, registration and ownership rules.
These then are some of the challenges facing our country on the investment front. As the day progresses, you will hear specific presentations from key Ministries about investment opportunities in areas ranging from mining to agriculture, public works, transport, housing, electricity, oil and gas.
But, beside these specific investment opportunities, I would like to say a few words about Liberia's special attractions as an investment destination in West Africa or comparative advantages:
- Our historical openness to foreign investment was embodied in our "Open Door" policy which is one of the twin pillars of our national development for over half a decade.
- We have a traditionally friendly, English-speaking population with close historical, social, political and economic ties to the United States. This is a huge advantage as I assume in negotiating with some of our friends from the Far East, over many other countries in Africa where language is a real barrier to doing business and much can be "lost in translation".
- We enjoy a key strategic location on the West Coast of Africa with four deep water ports, one of the largest airfields in West Africa with easy geographic access to markets in Europe, North America, South America, as well as the entire West African sub-region.
- Liberia is a member of ECOWAS, which is a market of 240 million people in an economic zone.
- We enjoy abundant natural resources among which are gold, diamonds, timber, rubber, coffee, cocoa, iron ore, and possibly oil.
- We enjoy a rich and abundant agricultural soil nourished by one of the highest rainfalls in Africa that makes it ideal for agricultural products ranging from rice and rubber to oil palm and pineapples, cassava and citrus, timber, coffee and cocoa.
- We have one of the largest forest reserves left in the whole of West Africa. In fact our forests account for some 43 percent of the forest reserves of the West Africa region.
- We have a relatively small population in a country of 43,000 square miles right in the middle of the Economic Community of West African States (ECOWAS).
As Mr. Wolfowitz said yesterday, as if he had read my speech, "you are in fact not a poor country after all. Liberia is a rich country that has merely been poorly managed".
Recognizing the limited ability of the public sector to jump start our economy, the government is now, pursuing rescheduling of its debt and has continually stressed the need for the private sector to help shoulder the burden of national reconstruction, particularly in the area of job creation and through the attraction of foreign investment.
This government, through the support of the National Investment Commission has shown its commitment to the private sector. It will continue to do so I believe tackling many of the issues I have addressed in this paper so far.
In sum, I would say that Liberia is a country that enjoys a special situation for doing business right now. It has opportunities that many of you I think will find exciting. It has gone through a difficult period of civil conflict just like this great United States did, which I believe will make Liberia a stronger and better nation. I believe that we have decisively turned the corner from chaos and conflict, to peace and progress. We are in fact on the verge of a golden new age. It is my belief that we will in fact come out of our recent crisis a stronger more united nation. Our best days lay ahead and I invite all of you to join us in this exciting and potentially rewarding adventure of a rebirth of a nation.
Liberia is open for business once again!
I thank you.
Editor's note: Tolbert is a founding member of the AllAfrica board of directors.
Document AFNWS00020070227e32r000mr

China_Market'>Country as a 'Dumping Ground' for China Market
by Louis Okoroma

894 words

23 February 2007

12:14 PM

All Africa

AFNWS

English

(c) 2007 AllAfrica, All Rights Reserved
Feb 23, 2007 (Daily Trust/All Africa Global Media via COMTEX) --
There is a growing debate and uneasy calm within the Nigeria's business circle over the invasion of Nigerian market by Chinese investors. On the one hand, it is seen as a blessing as China is an emerging power in the global scheme of things, on the other hand it is seen as dangerous and an attempt to further cripple the dwindling Nigerian economy.
President Obasanjo's apologies say it is part of the overall reform of the Nigerian economy, so as to give Nigeria the benefit of a fresh breeze economic, and to as well benefit from China's experience as an emerging super power.
On its part, China does not regret being a communist nation and has a lot of good results to show for its brand of communism. Chinese communism is the one that works and provides the good things of life for millions of people just the same way Western capitalism does but without enslaving or exploiting a significant part of the population of the country, they would say.
The China of today is a country that has arrived at the world stage to take the position which astute leadership, hard work and visible progress confers on a nation. It does not seek to replace the old Soviet Union or Russia in competition with the
US. Rather, China is set to occupy the enviable world leadership position commensurate with its dynamic and huge population and its material achievement in all spheres.
China is not interested in competition for world domination and colonialism but friendship and economic partnership which it hopes will ultimately benefit its less privileged partners.
Today China's economy is the fastest growing world over and arguably Nigeria can learn from its experience.
Its 2006 global trade surplus jumped nearly 75 percent from the previous year to a record $177.5 billion.
China's trade gap has soared as it became the world's low-cost manufacturing center, churning out furniture, toys, shoes and other goods, often for sale under foreign brand names.
The jump in the trade gap came despite a small but steady rise in its currency, the yuan, over the past year-and-a-half. Washington is pushing for a faster appreciation in hopes it will ease the US trade deficit with China by making American goods more attractive to Chinese consumers.
China's exports in 2006 rose 27.2 percent from the previous year to $969 billion, while imports were up 20 percent to $791.5 billion.The country's global trade surplus for 2005 was $102 billion.
The US trade gap with China was expected to pass 2005's record $202 billion. China's global surplus is smaller than that with the United States because it runs a deficit with other countries.
The country raised the yuan's value against the dollar by 2.1 percent in July 2005 and has let it gradually climb by about 3.8 percent since then in tightly controlled trading.
China also was a net auto exporter in 2006 for the second straight year, It also said exports doubled last year to 300,000 units, while imports rose 41 percent to 229,000 units.
According to report, Chinese government controls meant to cool an investment boom also widened the 2006 trade gap
It is for this reason that the Nigerian government under President Olusegun Obasanjo has put a lot of effort in cultivating good friendship with the government and people of China in his drive for economic reform and Foreign Direct Investment. The Chinese
have responded to the entreaties of President Obasanjo and today. Several Chinese companies in construction, telecommunications, oil and gas, pharmaceuticals, etc, have come into Nigeria doing business that is worth billions of Naira.
The important feature about China's growing interest and relationship with Nigeria is that our country's business landscape is widening and becoming more competitive among nations.
In the same vein, other countries are also working hard to break the Nigerian market thus making Nigeria, an important destination for international investment and finance.
But one complaint by Nigerian investors is that Nigeria is fast becoming a dumping ground while indigenous companies are dying.
This criticism of China's economic present in Nigeria does not call for Nigeria's break up of its relations with the emerging power; all it calls for is common sense.
Last year more than 40 African leaders attended the China-Africa summit in Beijin.
Happily, the Beijing conference identified some of these problems and efforts to address them are in the pipeline. According to report trade between China and Africa has increased tenfold since 1995.
It is not to say that there are no business men or manufacturers in China who produce sub-standard goods and cut corners to maximise profit. The Chinese are dealing with this problem and one hopes that Nigerian custom and destination inspection officials will do the same. However, the Nigerian businessmen should be patriotic enough to shun patronising sub-standard goods either from China or elsewhere for the good of Nigerians; with this Nigeria cannot be a dumping ground.
Mr. Louis Okoroma is a Public Affairs Analyst. He wrote from House 23, 22 Road, 2nd Avenue, Gwarinpa Estate, Abuja.
Document AFNWS00020070223e32n000j9

EUROPE/AFRICA/MIDDLE EAST

Nigeria launches power privatization drive and receives interest in Abuja distributor

959 words

22 February 2007

Global Power Report

COG

12

English

(c) 2007 McGraw-Hill, Inc.
Nigeria's bid to transfer control of its electricity distribution network and generation plants to the private sector began in earnest earlier this month with the submission of expressions of interest for the Abuja distribution company, the first of 11 regional distributors to be offered to investors.
Expressions of interest in the other 10 distributors and three gas-fired thermal power plants are due March 9 after the state privatization agency, the Bureau of Public Enterprises, decided to extend the deadline from February 16. With presidential elections due this April, further delays are expected, but BPE and its advisors are confident that the process will not be derailed.
The regional distributors and thermal plants are the first major assets to be offered to the private sector, as the government attempts belatedly to attract investment to deliver stable electricity supply to one of Africa's richest nations. The country, with a population of 146 million, has only 2,500 MW to 3,000 MW out of a total capacity of 6,000 MW operational to meet unconstrained demand estimated at between 10 GW to 12 GW. This, not surprisingly, is creating severe impediments to economic development. The government has turned to independent power producers, led in many cases by international oil majors such as Shell that have interests in Nigeria's hydrocarbon resources, to bridge the supply shortages, while transfer of the distribution networks into private hands is aimed at ensuring the grid's ability to deliver power.
There has been significant interest shown in the Abuja distribution company by local and foreign investors, according to Robert Yates, managing director of UK-based IPA Energy and Water Consulting, which is leading the investment banking advisory team. Yates would not reveal the names of the bidders but said that most are already operating in Nigeria either in generation or operating distribution districts under management contracts. "Most of the companies that we expected to express interest have appeared," he said. "We are pleased that most of the international companies with experience of Nigeria are coming back for more. No doubt we will see one or two new names; we have had interest from India and China and they will both be newcomers to Nigeria's power sector."
Restructuring and privatization of Nigeria's power sector kicked off in March 2005 with the adoption of the Electric Power Sector Reform Act, which paved the way for the establishment of the Power Holding Company of Nigeria, PHCN, as the successor to the National Electric Power Authority, NEPA. PHCN has since been unbundled and separated into 11 distcos covering the whole of Nigeria and six gencos: three gas-fired thermal power plants — 1,320-MW Egbin, 972-MW Delta or Ughelli and 414-MW Geregu — and three large hydropower stations — Kainji, Jebba and Shiroro — as well as a separate transmission company with offshoots for an independent system operator and market operator. Geregu in Kogi state is currently under construction while Egbin in Lagos and Ughelli in the Delta region are both operating below their full capacity and will require significant investment for their refurbishment.
A new, special purpose vehicle known as Nigeria Electricity Liabilities and Management, or NELM, will handle all of the legacy obligations of PHCN, taking over existing PPAs, some of the historic pension obligations and will probably act as a power procurer until there is adequate generation capacity operating in the country. Nigeria also has, since October 2005, an independent regulator, the National Electricity Regulatory Commission, which was set up to oversee the introduction of a competitive market, and which will play a leading role in winning over investor confidence.
Extending the bidding deadline for the other assets allows the government to focus its efforts on first completing the sale of the Abuja disco, based on which it will determine a time table for the sale of the remainder. "If the [sale] model that is adopted for Abuja works, [if] it is liked by the market and we finish up with a successful privatization then there is no reason to look at a different approach for the remaining ten distcos," said Yates.
Transfer of the assets is likely to take the form of an outright sale of 100% of the shares of the companies or the award of a concession for the operation of the assets for an undefined period of time. For the distcos, the BPE seems to favor the idea of offering a concession.
"Maximizing proceeds from an outright sale may not be the main driver," said Yates. "A concession offers the opportunity to place greater emphasis on securing the investments and management improvements that are needed to address inefficiencies, which could ultimately add more to Nigeria's economic well-being".
For the three gencos, a precedent exists for an outright sale, with several plants already under private sector ownership. The future owners or concessionaires of the plants will be offered either a PPA with the NELM as the offtaker or some sort of contract or form of PPA with the local distribution company, with the NELM, most probably guaranteeing the obligations of the distribution companies.
For further information and instructions, applicants are advised to visit the following web sites: www.cpcstrans.com or www.ipaenergy.co.uk .
Expressions of interest, indicating in which companies they are interested, should be submitted not later than March 9 at 17:00 hours local time to Director General, Bureau of Public Enterprises, 11 Osun Crescent, Off IBB Way, Maitama, Abuja, Nigeria; phone: [phone]. Attention: Director, Power and Steel Department, phone/fax: [phone], email: [e-mail].
Document COG0000020070308e32m0000h

VOA NEWS: NORTHERN NIGERIAN BUSINESSMEN DEBATE EFFECTS OF CHINESE INVESTMENTS
931 words

22 February 2007

US Fed News

INDFED

English

© Copyright 2007. Hindustan Times. All rights reserved.
KANO, Nigeria, Feb. 22 -- The Voice of America issued the following story:
By Isiyaku Ahmed In Nigeria, the northern town of Kano is the second largest commercial city after Lagos. Kano is known for its export of groundnuts and cotton. It also has a large number of manufacturing industries. But today, cheap imported products from China like textiles, electronic, and shoes are said to be overtaking older established industries.At one time, business was busy in Bompai, but not today. Most of the industries are shut down. The few that are operational are experiencing harsh times. Umar Sani Marshal is an industrialist and a businessman. He says Kano town is known for its industrial decline, but it is gradually coming back to life thanks to Chinese business interests,who are taking advantage of cheap labor in order to manufacture plastics.He says Chinese businessmen are revitalizing the plastic industry, employing indigenous workers and paying low wages.
"Most of the plastic goods that are going to the market were imported before, but now when you look at it, the Chinese are discovering that they can have raw material at a cheap rate, they can have a good environment, they can have cheap labor. When you combine all these together, you can see that gradually they are coming."
Umar Sani Marshall says Chinese businessmen have overcome hardships in Nigeria, like erratic electricity supplies by providing alternative power supply at high cost for their factories.
"We have some positive achievements in the influx of Chinese businessmen. When you look at the expansion in the textile and plastic industries you can see that it has created a lot of job opportunities especially in this part of the country. Only the Chinese and other Asians will endure all the hardship that most of the northern manufacturers are facing, due to epileptic power supplies, shortages of energy and other stuff."
Kantin Kwari is a growing out door market in Kano. This market is bustling with the buying and selling of imported textiles from China. Marshall says Kano and Nigeria would be harmed, if Chinese businessmen withdrew their investments.
"I am a manufacturer just like the Chinese. I am not being afraid of the Chinese because they are contributing to the economy. The highest number of private employers in Kano are the Chinese and they have been expanding day by day. So we should not look at the negative aspect of the Chinese. We should look at them in a positive way that will give us the chance to challenge them, compete with them in business. If they close down their industries, you will see the number of unemployed in Kano will be very high."He says.
Mallam Mohammed Sani is a big time businessman in Kano.He specializes in the importation of telecommunication equipment, including the GSM telephone handsets and accessories. He strongly disagree with Marshall that China is industrializing Kano or Nigeria.
He says Chinese businessmen should set up more industries rather than importing so many finished goods into the country.
" Honestly, China is not doing good in anyway to the Nigerian economy by exporting its finished goods to the country. The indigenous industries are being crippled and again it creates a serious situation of unemployment. They say they are promoting the country's economy. If it is true, why can't they come and site the industries within the country? So that by so doing job opportunities can be generated and at such even the cost of the product will be lowered."He says.
Mr. Ibrahim Inuwa Balarabe agrees. He is an economics lecturer with the School of Management Studies, a unit of Kano State Polytechnic.He says the Chinese investments do not automatically imply industrialization.
He adds that,"I cannot subscribe to the idea that Chinese activity in Kano state will help in industrializing Kano. Rather what the Chinese do in Kano is just to look for businessmen to liaise with them and allocate goods that they can sell on their behalf . Since we are just importing what China produces and selling in Kano that means it's only China that benefits; by buying from them we create a market for them and we also create employment opportunities for them. Also the raw materials that they use to produce most of the things that they bring to Kano are normally extracted here in Kano. When you look at it, I don't think from the economic aspect of it Chinese activity will help Kano to become industrialized."
China began to open up its economy in the late 1970's when it moved from a centrally planned economy to a market-oriented economy; it decentralized trade, slashed tariffs, unified the dual exchange rates in 1994, and removed exchange controls on current transactions in 1996. These actions, together with other reforms, triggered the rapid expansion of China's