Business / Economy

Africa becoming hot destination for investment

By Li Jiabao, Du Juan and Zhang Zhouxiang (China Daily) Updated: 2014-02-25 07:29

While China is Africa's largest trading partner, the continent is the fourth-largest destination for Chinese overseas investment.

Africa becoming hot destination for investment

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At the end of 2012, more than 2,000 Chinese enterprises were reporting direct investment of more than $20 billion in Africa as well as employing more than 80,000 locals, according to a 2013 white paper on China-Africa economic and trade cooperation.

In the first 10 months of 2013, China's direct investment in African non-financial sectors surged 71.6 percent year-on-year to $2.54 billion, according to the Ministry of Commerce.

Li Jinzao, vice-minister of commerce, said that China-Africa economic cooperation is in a period of rapid growth, transformation and upgrading because of increased mutual interests and demand due to enhanced economic integration.

Different positions

The two regions' different positions on the global industrial ladder are a fundamental force boosting bilateral trade as well as China's investment in Africa, the official added.

Africa is an important market for China in terms of project contracting and overseas investment and is a crucial energy supplier, while Africa needs China's expertise, technology, capital and talent for development.

President Xi Jinping chose the African continent to be among the destinations on his first foreign trip last March after assuming China's presidency. While visiting Tanzania, he said China would strengthen mutually beneficial cooperation with African countries in such fields as agriculture and manufacturing, and help African countries to achieve internally driven and sustainable development.

Vice-Minister Li noted that Xi's visit has helped expand and improve the scope and quality of China-Africa economic cooperation.

China plans to extend cooperation into such sectors as finance, aviation and services while building a better environment, he said. Future projects will focus more on improving the locals' lives.

"The tendency exists and is becoming more obvious," said Dou Hongen, a senior engineer from the Research Institute of Petroleum Exploration and Development at China National Petroleum Corp, who spent many years in Africa and South America.

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