37 The new balance: The Silk route New scramble for African resources In the 2nd half of the 1990s, a new engagement of China with Africa started to emerge, one that was based on economic interests. China's appetite for oil, metals and agricultural products have made it an early and strong player in the current struggle for African resources. China's involvement concerns mainly the natural resources, and about 30% of Chinese oil consumption comes from Africa. This is very high compared to other oil- consuming countries. China's oil consumption growth still has a long way to go, and securing access is important. With a strong emphasis on Africa, it is able to diversify away from the troubled Middle East. Consequently, China's involvement in Africa is centred mostly on the countries of our theme ' GDP growth through natural resources wealth'. China's presence is very significant in Angola, Nigeria and Equatorial Guinea, though it also imports a significant amount of oil from Sudan. Together with the the Congo, these 5 countries account for 85% of China's imports from Africa. Metals, in countries like Zambia ( copper) and South Africa ( iron and steel) are also of interest to China. With South Africa, it has the most diversified trade relations and in the 1990s, Asia Pacific was South Africa's fifth largest trading partner, currently it is the second. These relations come under our other theme, concerning the southern part of the continent. African exports in millions of US dollars * Trade between China and Africa topped 50 billion U. S. dollars in 2006, up 40% on the same period, 1 year earlier.

38 The new balance: The Silk route Indo- African trade During recent years, India is also emerging as a player in Africa and, like China, it is very much interested in African commodities. In April, it held the first ever India- Africa Forum Summit, where it pledged US$ 500 million in funds to Africa for trade, energy and global issues. India has focused mostly on the countries of East Africa, that have a large Indian diaspora ( Kenya, Tanzania, South Africa, Uganda, Mauritius). This diaspora can potentially strengthen ties in the same way that Chinese strengthened its overseas ties with South- East Asia. Both India and China maintain relations with Africa at a public ( state) level, as well as at a private ( corporate) level. But whereas for China, the state leads and companies follow, India's engagement has a strong predilection for private sector- driven activity. Well known companies like Tata, but also Ranbaxy, that manufactures cheap medicine, see great potential in Africa. In terms of diplomacy, New Delhi's strengthening ties with Africa can be viewed as a means to garner support for its strategic interests. Exposing the gaps in Pakistan policy towards the region, giving India tremendous prospects in crucial area's like energy. * Civil nuclear cooperation is also considered as an emerging area of interest between South Africa and New Delhi. The India- Africa trade volume has increased by 285% to US$ 25billion in the last 4 years. * There are indications that India might be announcing duty cuts on certain imports from Africa.