Week in Review: Chinese Hostages Freed in Nigeria & China Cuts Oil Buys From African Suppliers

Chinese defense contractors are making further inroads into the Angolan market. The state-owned China National Aero-Technology Import & Export Corporation (CATIC) signed an $85 million deal to provide the Angolan defense sector with a “supply of equipment, military means and assistance services.” CATIC is already a big player in Angola after selling the air force more than a quarter of a billion dollars’ worth of jets and other equipment. (CHINA LUSOPHONE BRIEF)

A South African container ship with more than a thousand pallets of grapefruit is idling off the coast of Shanghai after it’s been repeatedly denied permission to berth. The vessel left Durban in late May for Japan where it dropped off some of its cargo and then headed for Shanghai where it’s been anchored for more than three weeks. Neither Chinese officials nor South Africa citrus industry representatives are commenting as to what’s going on. Two more cargo ships, also loaded with South African citrus, are on their way. (FRESH PLAZA)

The Iraqi government formally withdrew from a $2 billion pre-paid oil supply agreement with China’s Zhenhua Oil Company, the oil trading subsidiary of the weapons giant Norinco. The deal caused a big stir last year when it was announced amid China’s growing prominence in the Iraqi oil market. But now that oil prices have rebounded, the Iraqis feel they can do better by selling petroleum on the open market. The cancellation of the deal, though, will not impact Zhenhua’s other operations in Iraq, from where it exports 18 million barrels per year. (S&P GLOBAL)

The DR Congo government is losing out big time to a consortium of Chinese investors behind the controversial 2008 Sicomines mining deal, according to the findings of a 5-month investigation by Afrewatch, a Kinshasa-based NGO. The Chinese side hasn’t delivered the promised infrastructure and has failed to transfer all of the promised funds, while the Congolese side has already repaid 50% of its commitments, said the group at a press conference late last week in the Congolese capital. (RADIO FRANCE INTERNATIONALE)

Egyptian Minister of Housing and Urban Communities Essam el-Gazzar led a “topping-out” ceremony after Chinese contractors built the frame for the new 385-meter-high Iconic Tower that will serve as the centerpiece of the new administrative capital outside of Cairo. When complete, the new tower will be the tallest in Africa. Chinese contractors from the state-owned company CSCEC are building an entire city located 50km from the current capital. Government workers will begin moving to their new offices towards the end of the year. (ARAB NEWS)

A Tanzanian court in Dar es Salaam freed six Chinese nationals on Friday after the judge said  “he had no interest in proceeding with the case” for illegally trafficking a protected animal. The six were arrested last August for possession of a highly-valued peacock that is protected under Tanzanian law. All six were employed by the Sinota Shipping Company and immediately ran out of the court into a waiting car upon their acquittal. (THE CITIZEN)

Chinese President Xi Jinping spoke by phone on Monday with his Tanzanian counterpart Samia Suluhu Hassan. No major headlines emerged from the call, which appeared to be more of a “check-in” between the two leaders. More important than what was actually discussed is the apparent frequency of personal engagements between President Xi and African leaders. Calls like this with African heads of state are now happening at a pace of one or two a month. (XINHUA)

China is buying less oil from African suppliers, according to new Chinese customs figures. Overall, total African crude sales in May fell by 5% compared to the same time last year and were down 0.9% in the January-May period. Angola, China’s largest African supplier, was the one bright spot in the report, with deliveries edging up 4.6% in May from the previous month and 11.7% higher than the same time last year. China has diversified its oil buying over the past decade to rely more on producers in the Persian Gulf, Russia, and Brazil. (OILPRICE.COM)

South African media and e-commerce giant Naspers posted a 24% rise in full-year profits thanks largely to its massive stake in Chinese internet giant Tencent. Naspers’s 28.9% stake in the Chinese firm, which it holds through its Amsterdam-listed subsidiary Prosus, saw its profit grow by 33% in the last financial year. The Cape Town-based firm is Africa’s largest company by market capitalization. (REUTERS)

Four Chinese rail workers kidnapped last week in southwest Nigeria have been released, police said on Tuesday. The four were abducted last week from a rail construction site at Alaagba village in Ogun state by unknown gunmen who also killed their police escort. It’s not clear what precipitated their release but local media are reporting that a ransom was paid.  (AGENCE FRANCE PRESSE)

Two Kenyan civil society organizations are suing the government to make public the terms of the $6.4 billion in Chinese loans used to build the Standard Gauge Railway (SGR). The petitioners want the High Court to compel the government to make public all information pertaining to the SGR contract with China Exim Bank, China Road and Bridge Corporation, China Development Bank, Africa Star Railways Company and the government of China. (THE STANDARD)

Zimbabwe expects to receive 2.5 million COVID-19 vaccine doses from China by the end of this month as it seeks to boost its vaccination drive after several centers ran out of doses, which caused panic, the information minister said on Tuesday. “Arrangements are currently in progress to procure 2 million doses of vaccines from China. These are expected in the country by end of month. Furthermore, 500,000 doses of vaccines are expected to be delivered this Saturday,” Monica Mutsvangwa said during a post-Cabinet media briefing. (REUTERS)

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The post Week in Review: Chinese Hostages Freed in Nigeria & China Cuts Oil Buys From African Suppliers appeared first on The China Africa Project.

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