Africa continues to shine for investors from China

By Du Juan (China Daily) Updated: 2014-11-18 09:15

Paul Theiss, chairman of Mayer Brown, said challenges remain for China's investment in Africa even though it can provide stable jobs to Africans who are eager to climb out of poverty.

"China is facing a host of perception-related issues in Africa as local employees are often suspicious of China's true intentions, and chafe under the different expectations of Chinese employers," said Theiss.

Tong Junhu, general manager of the overseas development department at China National Gold Group Corp, the nation's biggest gold producer, said China is still facing challenges like unstable political conditions, weak infrastructure and poverty in Africa.

"China Gold has been working on many corporate social responsibility projects in Africa to strengthen communication with local communities," Tong said.

The company has helped local Africans build roads and bridges and also donated money for education and drinking water projects for residential communities, according to Tong.

He said the investment environment in Africa's mining industry has been improving and the overseas business now has a major say in the overall group profit.

"Considering the current weak commodities market, it is a good time to invest in African mineral resources business at reasonable cost," he said.

Ge with Mayer Brown said Chinese companies need to conduct more thorough due diligence that fully accounts for the unique costs and challenges presented by the target market in Africa.

To better reform Chinese companies on outbound investment, the Chinese Chamber of Commerce of Metals, Minerals and Chemicals Imports and Exports released its guidelines for social responsibility in outbound mining investments on Oct 28.

Zhang Jianping, a senior researcher at the Institute for International Economic Research at the National Development and Reform Commission, said it is important for the country to provide outbound investment guidelines for huge industries like mining.