Nigeria-China trade imbalance to soar
January 19th, 2014
(Lagos, Nigeria): Nigeria-China trade imbalance may continue due to the volume of export and import between Nigeria and China.
This imbalance results from increased import from China which does not commensurate with Chinese import volume.? This is contained in a working paper released today by Initiative for Public Policy Analysis (IPPA).
The paper titled “China in Africa: An Evaluation of Chinese Investment’ authored by Thompson Ayodele and Olusegun Sotola examines the nature of Chinese investment in Nigeria and Africa. It shows a clear trend that suggests China investment is largely beneficial to Africa, but that Nigeria and many African countries have not been able to diversify their exports beyond primary products. It notes that Nigeria potentials to secure a positive balance of trade with China based on? her natural resource export to China was unrealised due? to massive importation from China and that this scenario is very likely to continue.
The paper observes that a significant investment has come from Chinese state-owned enterprises but investment from the private sector is growing in an unprecedented manner. It however notes that? Chinese trade and investment do not poses? a significant threat to African economies but that gains from the trade relations with China cannot be evenly spread across countries because of differences in each country export potentials and the nature of exports to China as well as the volume of imports from China.
The paper also looks at the widespread concerns regarding the motives of Chinese engagement in Africa and finds that rather being seen as a new colonizer or exploiter, China should be seen as a partner in development.
“China has emerged as a key global leader. Its trade relations and investment activities in Nigeria and other African countries must be examined with the same rigour as that of the western countries. It is important that we separate the facts from the emotions on the ongoing international development debate on China real interest in Africa, this paper presents evidence that clearly shows that China grand interest is to develop domestically, coincidentally it is beneficial to Africa. What needs to be further examined is the sustainability of the present engagement and how governments in Africa can further build on it,” says Olusegun Sotola, a co-author of the study.
According to Olusegun, Chinese government imposes no political conditions on African governments before signing contracts either for exploration or other economic activities. Again Chinese firms are willing to invest where western companies are unwilling. Western investors and aid agencies are unwilling to invest in areas such as physical infrastructure, industry and agriculture which are critical to development in Africa.
The study also finds that China interest in Africa is not due to crude oil as widely claimed as only 9 per cent of Chinese oil is imported from Africa, while the United States imports 32 per cent and Europe 33 percent.
It notes China’s economic rise is shaping the international order by introducing a new development paradigm. The economic growth in China and other Asian Tigers demonstrates that economic growth could be brought about by democratic or non-democratic government.
The paper concludes that African countries should take the opportunities offer by this engagement to diversify their export potentials. It argues that the key reason for Chinese relatively cheap products is the low labour and transaction costs. Wages are already rising in China as the China Cabinet promised to increase wages by 13% in 2015.The impact of the increase in wages in China would ultimately jerk up the prices of the products exported. This means African countries must be strategically positioned to take advantage of this.
Full Paper is available: http://www.ippanigeria.or/china_africa_working.pdf
Dear friends of IPPA:
The entire IPPA team wishes you Happy New Year and a prosperous 2013.
This is to use this medium to inform you that the Initiative for Public Policy Analysis(IPPA) has moved to a new office. The relocation to a new and spacious office is largely necessitated by increased in IPPA’s activities in recent time.
For this reason, we would like to thank you very much for your support in 2012 and look forward to your support again in 2013.
2 Olufunmilayo Street
Ground Floor
Off CMD Road
Ikosi-Ketu
Lagos, Nigeria.
P.O.Box 6434
Shomolu
Lagos, Nigeria
Nigerian Government Reaches out to IPPA
8/31/10
In recognition of the unique roles which the Initiative for Public Policy
Analysis(IPPA) plays in public policy issues in Nigeria, the Nigerian President, Goodluck Jonathan, last week invited the Initiative for Public Policy Analysis(IPPA) to the Public presentation of his administration’s Roadmap for Nigerian Power Sector Reform.
This is an indication that IPPA is making the required impacts in Nigeria and recognised for its work.
This would not have happened without your support. The credit goes to you.
Regards
Thompson Ayodele
Director
Initiative for Public Policy Analysis
P.O.Box 6434
Shomolu,Lagos
Nigeria
Email:thompson@ippanigeria.org
Backup: thompson.ayodele@gmail.com
Website: www.ippanigeria.org
*****Good Public Policy is Sound Politics**********
African Roundtable Issue Number 2, November 2007
The prestigious Mo Ibrahim prize recently won by Joaquim Chissano the former Mozambican President is a pointer that there are leaders in Africa who are bent on creating indelible legacies on the continent for others to emulate?
Since it originated 19 years ago at the World Summit of Ministers of Health on Programmes for AIDS Prevention, the concept of World AIDS Day has been dedicated to raising awareness on the perceived pandemic caused by the spread of HIV infection?
If an accident kills wildlife or people, punishment is meted out and restitution made?
I recently heard a great daughter of Africa tell a story of two sisters who chose two different paths?
One can certainly feel for President Thabo Mbeki of South Africa, after working so hard coming out with so many policies he finds to his dismay that the poverty levels in South Africa for the poorest of the poor have doubled?
In his budget speech last week Finance Minister Trevor Manuel urged SA?
to?? take the initiative in reducing artificial barriers to trade,?
suggestions that should be welcomed and applauded?
An appraisal of the Nigerian law indicates that the major parts relating to exploration and production of petroleum extend back to the Mineral Oil Act of 1914?
Myddelton describes why well-meaning politicians and government officials so often get involved in grandiose projects, make a hash of them, and cost taxpayers huge amounts of money?
Editor
The African Roundtable
P.O.Box 6434
Shomolu
Lagos,Nigeria
Tel: 234-1-791-0959
Cell:234-70-3263-3711
-expanding business opportunties
IPPA Nigeria Launches the African Roundtable
November 8, 2007
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Initially known as the Enterprise, The African Roundtable is aimed at expanding opportunities in Africa.
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It would offer a comprehensive analysis on development issues concerning Africa. It would be a platform for like minds to offer solutions to myriad of problems militating against development in Africa.
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The African Roundtable would be published twice monthly for the rest of this year. Through contributions of in-house team and contributions by others, the African Roundtable would discuss how the 21st Century would be the time to positively alter development in Africa and how the entrepreneurship skills naturally embedded in Africans could be re-ignited.
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The magazine would be an interacting one. It provides comments and feedbacks from readers at the end of each articles.
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It also creates an opportunity for readers to vote on critical issues that are of interest to growth and prosperity of Africa.
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IPPA would like to thank those who supported the launching of The African Roundtable and hosting of its website.
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In this issue, Number 1, November 2007:
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Editorial
Challenges before Sierra Leonean President
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Interview
Africa is Ready for Democracy
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Economy
Reform Tax to Compete Globally
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Health
Understanding the Nigerian Healthcare System
Bureaucracy burdens SA’s private health care
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Environment
Groundless Environmentalism
Development
Statist NGOs wreak havoc in Africa
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Thompson Ayodele
Executive Director
Initiative of Public Policy Analysis
P.O Box 6434
Shomolu-Lagos
Nigeria
Website:www.ippanigeria.org
Tel: 01-791-0959
Cell:080-2302-5079
The 4th edition of the Enterprise, an online magazine from IPPA Nigeria
Highlights
Editorial
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Lingering Crisis in the Oil Rich Region
The pendulum, powered by ethnic and political rivalry, has been swinging and beating the drums of instability, uncertainty and sadly chaos in Nigeria. This is evidently demonstrated in the oil rich Niger Delta. The youths in the area operate under various groups.? The most prominent is the Movement for the Emancipation of the Niger-Delta (MEND)….page 1-2
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Commentaries
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Free Markets Give the Poor Options
The market is constantly despised and castigated for aggravating the lot of the poor and for increasing their poverty levels. But what makes a country poor or rich does not have any relation with its population or resources that such a country might possess…Page 2-3
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Anti-graft War Must be Self Driven
Apparently piqued by the meddlesome in the affairs of the Economic and Financial Crime Commission by the presidency, last week the Nigeria Senate President informed the media that President Obasanjo lacked the power to meddle into the affairs of the Economic and Financial Crime Commission…page 3-4
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Farmers Sitting on Goldmine
Ever seen a place where the refrain ‘less than 1 USD per day’ has numbed the nerves and made residents to believe that they are poor, and that unless someone bails them out of their predicament, their lot in life will never change?…page 4-6
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Eliminate Poverty to Increase Access to Essential Medicines
AIDS is one of the leading causes of death in Africa after malaria. Since the epidemic began about 15 million Africans have died.? It is estimated that over 25 million adults and children are living with HIV/ AIDS in Africa…page 6-7
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Foreign aid donors: first do no harm
In February, Liberian President Ellen Johnson-Sirleaf visited Washington to raise funds and gather advice to help her war-ravaged economy. But previous western involvement in the country, which was designed to help, actually ended up harming
Liberians’ health…page 7-8
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Wage Subsidies are Ineffective Tool for Reducing Unemployment
In President Mbeki’s recent state of the nation address he alluded to the idea that South Africa would be introducing some form of social security…page 9-10
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Africa: The Winds of Change Must Blow
Most politicians everywhere, once elected, try to gradually increase their grip on the very electorate that put them in power and to stay there as long as possible…page 10-11
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Thompson Ayodele
Executive Director
Initiative of Public Policy Analysis
P.O Box 6434
Shomolu-Lagos
Nigeria
Website:www.ippanigeria.org
Tel: 01-791-0959
Cell:080-2302-5079
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Here are the Highlights:……..
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Editorial
What future holds for DR Congo
The recent election in Democratic Republic of Congo is a clear indication that the once war-ravaged country could still soar high…Page 1
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Commentaries
Counterfeit Medicines: Lessons From United States
Counterfeit drugs pose potentially serious public health and safety concerns. Each year, counterfeit drugs are responsible for tens of thousands of deaths worldwide.? .….Page 2
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Follies of Raising Tax Revenue
Last year, the Federal Government indicated its desire to raise the Value Added Tax (VAT). To actualise this, it forwarded to the National Assembly a Bill asking it to increase VAT currently at 5% to 10 %. Fortunately for us the Senate acting on sound economic judgement rejected the proposal and it now lies with the House…Page 3
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South Africa’s Tax Laws Inconsistent with the Rule of Law
The proposed new tax anti-avoidance laws are bad news for the economy and the rule of law. They will add complexity to an already complex area of law…..Page 5
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When China Enters Nigeria
China is one of the last bastions of communism whose despot must be given credit for managing to convince the rest of the world that they are okay as a communist nation. While the two other remaining communist outposts, North Korea and Cuba, groan heavily under the weight of sanctions and have attained international pariah status, China has thrived economically and politically. It has done this through shrewd planning and realpolitik….Page 6
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Nigeria: Paradox of Manufacturing Sector
Manufacturing is vital to industrialisation and job creation. Over the years the Nigeria manufacturing sector has been bedeviled by myriad of challenges. Of all the sectors in Nigeria’s fledging environment, the manufacturing sector has always been the whipping boy. Page 6
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Cutting Down Back-Pain in Rural Areas
Rural Populations are getting disfigured, and suffering neck-and-back pains planting and weeding crops in order to feed Africa. Despite the fact that 80 per cent of Africa is engaged in the activity of food production, they have failed to effectively feed close to 210 million out of the 900 million people…..Page 8
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Thompson Ayodele
Executive Director
Initiative of Public Policy Analysis
P.O Box 6434
Shomolu-Lagos
Nigeria
Website: http://www.ippanigeria.org
Tel: 01-791-0959
Cell:080-2302-5079
