Guinea: Thinking Out of the Bauxite

14thOct. × ’09
Image via BSG Resources Limited

Image via BSG Resources Limited

The junta government of Moussa Dadis Camara waved a big paycheck in front of the international community yesterday–a potential $9 billion payday from a Chinese company for the resource rich West African nation.

At a moment when Western powers–and to a certain extent–Guinea’s neighbors would like to isolate the new government, the Chinese investment complicates that effort. The implication is that the Chinese money has no strings attached. No human rights quid pro quo. No obligation to call an election. Other major investors in Guinea–Australian, Russian and American companies–can’t offer similar guarantees. And the junta government appears to willing to hand over their concessions to partners less interested in matters of domestic concern.

But, foremost, the situation in Guinea is a domestic crisis. And that crisis is maturing. Notably, refinery workers and miners are entering their third day of a general strike. This sort of unrest should give any foreign investor pause.Will China fulfill it’s $9 billion promise of new infrastructure–power generation, roads and rail, aviation links–with the specter of sanctions hanging over the country?

More immediately, there is the question of  Guinea’s neighbors. This weekend’s ECOWAS summit in Abuja may produce some public proclamation or the other, but I’d imagine the six countries that share a border with Guinea are privately making their own plans.

This entry was posted in Broken news, Recently released and tagged , , , , , , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

Powered by WP Hashcash