VZCZCXYZ0020
RR RUEHWEB

DE RUEHWD #0132/01 0421601
ZNR UUUUU ZZH
R 111559Z FEB 10
FM AMEMBASSY WINDHOEK
TO RUEHC/SECSTATE WASHDC 0192
INFO AFRICAN UNION COLLECTIVE

UNCLAS WINDHOEK 000132 
 
SENSITIVE 
SIPDIS 
FOR AF/RSA LOUIS MAZEL, LAURA GRIESMER AND RYAN BOWLES 
 
E.O. 12958: N/A 
TAGS: PREL EAID CH WA
SUBJECT: Namibia: Chinese Engagement and Potential Areas for 
Cooperation 
 
REF: A) STATE 10152; B) 09 WINDHOEK 118; C) 09 WINDHOEK 302 
D) 09 WINDHOEK 424; E) 09 Windhoek 324; F) 09 Windhoek 302 
 
¶1. (SBU)Summary.  Namibia and China enjoy excellent relations based 
on historical ties and current bilateral trade and development 
assistance.  Those ties have only strengthened since 2007, when 
Chinese President Hu Jintao visited Namibia and the two governments 
signed an agreement for a concessionary loan and a credit line-- 
each valued at approximately USD 130 million--  as well as 
initiated several cooperative agreements on economic technology, 
human resources, education and tourism (ref B).  There are 
currently no examples of U.S.-China collaboration in Namibia, but 
there is potential, and likely willingness on the part of the 
Chinese, to develop such a partnership.  End summary. 
 
 
 
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Trade and Commerce 
 
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¶2. (SBU) Trade between China and Namibia continues to grow at a 
remarkable pace.  In 2007,  bilateral trade totaled nearly USD 400 
million, while in 2009, the volume of trade between Namibia and 
China exceeded USD 550 million, according to China's Ambassador to 
Namibia Ren Xiaoping.  The balance of trade favors Namibian 
exporters, who in 2009 sold more goods-- mostly semi-processed 
minerals, such as uranium,-- to China.  China, in turn, exported 
vehicles, trucks and equipment to Namibia.  Rossing, Namibia's 
largest uranium mine,  produced 4150 metric tons of uranium in 
2009, and of that, China is estimated to have obtained 
approximately 1000 metric tons.  In January 2010, Paladin Energy, 
which owns Namibia's second fully operational uranium mine (Langer 
Heinrich), announced that it would send a trial shipment of uranium 
to China "to test and demonstrate the efficiency of logistics from 
Africa to Chinese conversion facilities."  China is also expected 
to purchase 35 percent of the Areva Trekkopje mine's uranium 
output, once the operation achieves full production levels in 2011. 
In addition, a number of Chinese-owned companies have mining 
exploration licenses.  Chinese-owned Zhonghe Resources (Namibia) 
Development (Pty) Ltd has a exploration license that covers nuclear 
fuel (uranium).  Other Chinese mining firms (Namibia East China 
Non-Ferrous Mineral Exploration and Development and Namibia-China 
Mineral Resources Inv. Dev Pty Ltd) hold exploration licenses for 
other minerals, such as copper. 
 
 
 
¶3. (SBU) China has also deepened its cooperation with Namibia in 
the aquaculture sector.  In January 2010, Vice Minister of 
Agriculture Niu Dun led China's first delegation to Namibia to 
discuss bilateral cooperation in the fishing industry.  China 
reportedly offered Namibia student and information exchange 
programs as well as approximately USD 2 million for aquaculture 
development.  Chinese firms continue to dominate the construction 
industry, which has engendered some public resentment.  In a move 
seen to target Asian construction firms, the Tender Board announced 
in February that companies using unskilled and semi-skilled foreign 
laborers would no longer qualify for government tenders.  It is 
unclear how this decision will affect construction projects 
financed by tied aid. 
 
 
 
¶4. (SBU) Some Chinese business deals have recently come under harsh 
criticism and allegations of corruption (ref C).  For instance, 
Namibia's Public Services Commissioner, her business partner and a 
Chinese national are alleged to have defrauded the Namibian 
government of USD 4.2 million in a deal involving the GRN's 
purchase of x-ray scanning equipment from NucTech, a Chinese 
government-owned company (refs E and F). 
 
 
 
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Development Assistance 
 
 
--------------------------------- 
 
 
 
¶5. (SBU) China is showing growing interest in providing development 
assistance to Namibia.  In December 2009, Namibia signed a grant 
agreement with China for USD 11 million.  A portion of those funds 
has already been used to build rural schools, known as China 
Namibia Friendship Schools, in the towns of Tsumkwe and Omuthiya. 
The Chinese government has financed the building and refurbishment 
of several hospitals, and Chinese medical teams work in a number of 
Namibian health facilities.  The Chinese are reportedly becoming 
more involved in rural development projects with women and youth. 
 
 
 
¶6. (SBU) China has also provided Namibia with scholarships and 
other training opportunities.  Since 2006, China has offered over 
300 training opportunities to Namibians in fields such as public 
administration, economics, agriculture, aquaculture, mining, and 
health, according to Ambassador Xiaoping.  In October 2009, major 
newspapers reported that the Chinese government had given several 
scholarships for study at Chinese universities to the children of 
prominent politicians, including the daughter of President Pohamba 
(ref D). 
 
 
 
¶7. (SBU) In addition, Ambassador Xiaoping has announced that it is 
her goal to implement in Namibia all eight of the African 
development initiatives launched by President Hu in 2006 at the 
China Africa Summit held in Beijing.  She also credits the Forum of 
China-Africa Cooperation with bringing "tangible benefits" to 
Namibia, such as the construction of: the regional council 
buildings in Kavango and Omusati, the president's official 
residence (which is part of the North Korean-built State House 
complex), a fishery laboratory in Kavango, a youth training center 
in Grootfontein, and a yet-to-be-constructed defense academy in 
Okahandja (ref B). 
 
 
 
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Military Cooperation 
 
--------------------------- 
 
 
 
¶8. (SBU) China has a permanently assigned military attach???? to its 
diplomatic presence in Namibia.  The Chinese and Namibians often 
conduct exchanges of senior military officers and cooperate on 
professional military education initiatives (ref B ). 
 
 
 
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U.S.- China Collaboration 
 
-------------------------------- 
 
 
 
 ¶9. (SBU) There are no examples of U.S.-China collaboration in the 
development sector.  However, there is certainly potential for 
collaboration and a willingness on the part of senior officials at 
the Chinese Embassy to work with the USG.  At a recent dinner 
hosted by Ambassador Xiaoping as well on several other occasions, 
Chinese diplomats have expressed interest in partnering on 
development projects.  One possible area for collaboration is 
disaster preparedness, a sector in which the Chinese are becoming 
active internationally.  USAID's Office of Foreign Disaster 
Assistance could assist perhaps in developing with the Chinese a 
training and capacity building program that supports ongoing 
multilateral efforts to empower the Red Cross in Namibia and in the 
region. 
 
 
 
¶10. (SBU) There may also be possibilities to collaborate in the 
health sector, whereby China undertakes to upgrade health 
facilities, while the USG provides technical assistance to develop 
health professionals.  Similarly, if the USG eventually expands its 
work in the broader health programs in Namibia, we could work with 
 
 
the Chinese on integrating services to rural clinics and health 
facilities.  It should be noted that the Chinese have also inquired 
about the activities of the Peace Corps Volunteers in Namibia, 
ostensibly to gain a better understanding of how the organization 
works with a view to improving their own volunteer corps structure. 
A partnership may be possible in this realm as well. 
MATHIEU