Highlights
− Qadhafi warns African leaders that he would pull Libyan investments out of Africa if they reject his proposal again for a unity government
− Libya reaches out to Japan for support in creating a unified African continent in exchange for exclusive rights to oil fields
− Libya looks with intent at Mediterranean and Arab investments in the near to mid-term
The African Union Summit for heads of state began on Thursday, January 31, 2008, in Addis Ababa, Ethiopia. This year’s theme of “industrial development in Africa” once again encouraged Libyan leader Muammar al-Qadhafi to press forward with his plan for a “United Sates of Africa.” Although Qadhafi argues that under his plan, Africa will gain a number of generous developmental investments and ensure a safer continent, other more dire issues, like ongoing violence in Kenya, Sudan’s ongoing Darfur crisis, and the Horn’s mini war, are at the forefront of Africa’s heads of state agenda.
As a result, Qadhafi’s patience for continued rejection of his African plan has waned, and he has threatened African leaders of pulling over $5 billion of investments from Africa and instead investing it into Mediterranean and Arab countries.
Patience Wears Thin
For eight years now, Colonel Qadhafi has been passionately advocating for a unified African continent. Under Qadhafi’s plan, the continent would be transformed into a national and sovereign federation of states similar in structure to the United States of America. Libya has stressed that the unification would bring a number of great benefits to Africa, including:
• Enhancing developmental projects of the African continent as a whole
• Setting up ministerial posts to coordinate policy in key areas, such as foreign affairs and defense
• Unifying the continent as a greater defense against foreign exploitation of goods and resources
However, Qadhafi has not received much support for the idea since it was first presented at the African summit in Lome, Togo, in July 2000. This year’s African Union summit in Addis Ababa gave Libya another opportunity to push forward with its optimistic unification plans, but summit members were quick to set the agenda on some of the continent’s other most urgent needs in Kenya, Darfur, and Somalia.
As a result, Qadhafi publicly announced his intentions to withdraw billions of dollars worth of investments throughout Africa and instead funnel it to Arab and Mediterranean states.
In a news conference before Qadhafi departed for the summit, he told reports, “If unity is not achieved, then Libya will turn its back on Africa and reorient its foreign policy in other directions – Euro-Mediterranean or Arab-Mediterranean.”
Reaching Out to Asia
In the span of less than one week, Qadhafi has received around 10 African leaders at his Tripoli residence in a bid to win their support for his unity project. However, the meetings did not go as expected. Moreover, and possibly as a result, Libya said it is willing to grant “exclusive rights” to its oil fields in exchange for Japan’s support in creating a unified African continent. According to Libyan politics, officials believe Japan may be a positive help since it does not have colonial ties or a long history in Africa, and can have a neutral role in encouraging other African nations.
Libya has recently begun taking bids from foreign companies for drilling rights to untapped oil reserves that lie in both inland and offshore areas. In a visit to Tokyo, Qadhafi’s special envoy, Mohamad Siala, advocated that Tokyo should not only purchase Libyan oil, but should become a stakeholder by having Japanese businesses purchase reserves and directly become involved in exploration and development of oil fields and production of crude oil.
Forecast: “United States of Africa” May Become “United Investments of Libya”
As with any government looking out for its best interests, Libya may soon turn its eight-year campaign for a unified African continent into its own investment campaign available to the highest bidder. Libya recently unveiled an ambitious four-year, $180 billion economic plan to construct roads and port facilities, which would entail taking advantage of its rich natural resources. Based on the ongoing rejection of Libya’s African unification plan, Qadhafi’s as become impatient and could withdrawal investments from Africa in the near to mid-term.
As a result, it is anticipated that European and Arab investors and companies will likely turn to Libya for investment opportunities. In light of Libya’s public announcements that it is willing to offer rights to oil fields and production, it is likely that Libya will begin retracting its push for unity in Africa at the expense of profitable investment options in the mid to long-term.
