Business / Economy

Africa becoming hot destination for investment

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

Of China's investment in Africa, a higher percentage is going into local infrastructure to not only promote the overall investment environment but also raise people's living standards, he said.

Africa becoming hot destination for investment

ICBC buys Standard Bank Plc

Building brand South Africa in China

China-Africa trade moves up

"Gone are the days when people dug resources out of Africa's lands and shipped them somewhere else, leaving nothing but waste behind," he said.

His idea was echoed by Guo Xia, China Overseas Investment Institute's chief consultant, who noted that China's help to African countries in infrastructure would be mutually beneficial.

China currently faces overcapacity in industries such as steel and coal production, so it is advisable for the nation to transfer part of that production to Africa, where infrastructure construction is in dire need of such enterprises.

"In that way, Africa will accelerate construction while China can better deal with the challenges of overcapacity," he told China Daily.

"In the future, China's investment in Africa and other continents will focus more on the industrial and service sectors of the economy."

Speaking of long-term prospects for Chinese overseas investment, Guo added that "agricultural processing, light and heavy industries, as well as many other industries that need materials and labor also have the potential to be moved to Africa, which can further help create jobs for the local people".

The embassy of Ghana in Beijing listed "oil and gas, energy" along with "infrastructure, real estate development, manufacturing and industry" as being among priority sectors for Chinese investors.

Ghana also has favorable laws, the embassy said, adding that it hoped foreign investors could respect local culture more, which can help in promoting cooperation.

Ahmed El Ghernougui, minister counsellor at the embassy of Morocco, also expressed his approval of raising China's investment in Africa, which he said would promote local economic growth.

Don't miss: