Tag Archives: Africa

China to increase investment in Africa

BEIJING, Nov. 26 (Greenpost) — China will increase investment in Africa and buy more non-resources products from the continent, an official said on Thursday.

“China will export advanced industrial production capacity to African countries,” Vice Commerce Minister Qian Keming told a news briefing.

He said China will diversify imports from the continent and buy more products in addition to primary commodities, particularly natural resources, which account for the bulk of China-Africa trade.

He said China has deliberated for a year on the “package of cooperation proposals”, which will be announced at the Johannesburg meeting of the Forum on China-Africa Cooperation next month.

The package is based around China “helping African countries upgrade industrial structure, safeguard food security and build infrastructure,” according to the vice minister.

“To that end, China will give African countries more low-interest loans and set up funds to finance the cooperation,” said Qian. Enditem

Source Xinhua, editor Xuefei Chen Axelsson

China, Africa to strengthen industrial cooperation

China, Africa to strengthen industrial cooperation

ADDIS ABABA, June 30 (Greenpost) — Officials from China, Africa, and the World Bank (WB) on Tuesday pledged efforts to strengthen industrial cooperation between China and Africa to boost the continent’s economic development at a two-day investment forum held in Addis Ababa, the capital of Ethiopia.

Chinese Deputy Minister of Finance Liu Jianhua said as Chinese businesses are investing abroad and African countries are attracting foreign capital, technology, and development experience, there is huge room for cooperation.

She said China is willing to help Africa build infrastructure network, achieve industrialization by scaling up financial, technological, and human resources support to Africa.

Liu also said China will increase its cooperation with multi- lateral institutions like the WB in its engagement with Africa. She revealed that China is planning to set up a 50-million-U.S.- dollar trust fund with the WB to support infrastructure development in developing regions including Africa.

According to official statistics, China has been Africa’s largest trading partner for six consecutive years, with trade in 2014 reaching 222 billion U.S. dollars. Chinese invested a record high of 4 billion U.S. dollars in Africa last year, up 14 percent from a year earlier. At least 2,500 big and medium Chinese companies have registered to be operating in Africa, across a broad variety of sectors.

A WB report shows that Chinese investment in Africa is increasingly shifting towards the manufacturing sector as the Asian nation diversifies out of primary sectors such as agriculture and mining. Manufacturing is key to Africa’s future development, the report notes.

In his opening remarks, Prime Minister Hailemariam Desalegn of Ethiopia noted that his government sees the forum embodying three important themes, including Africa’s commitment to economic transformation, strong partnership between Africa and China, and the power of industrialization to deliver development results.

The Premier said China-Africa partnership, which has mutually beneficial results across Africa, has expanded rapidly and taken new momentum.

“As China-Africa trade cooperation moves into its next phase, there will be significant scope for diversification of our economies and exports, particularly into agriculture and manufacturing,” he said. “Chinese investment can be instrumental in addressing structural and logistical constraints that impact the competitiveness of African exports.”

Makthar Diop, WB Vice President for Africa, highlighted China’s experience of dedication, long-term planning, and pragmatism as three major lessons for Africa to learn in order to industrialize. He said Africa’s economy has been growing averagely 5 percent over the past decade and proved itself resilient during the 2008-2009 global economic crisis. However, the negative impacts on the economy brought by recent months’ drop of commodity prices signifies the need for Africa to diversify its economy, Diop said.

One of the key issues discussed at the forum was the role industrial parks and special economic zones play in the process of industrialization.

Since 2007, the Chinese government has been supporting six Chinese company-initiated industrial zones in Africa, located in Egypt, Zambia, Nigeria, Ethiopia, and Mauritius. Economists including WB former chief economist Justin Lin highlighted the success of this innovation especially the Eastern Industrial Park in Ethiopia for facilitating the relocation of China’s labor- intensive light manufacturing.

He said Africa, with 1.1 billion population and low labor costs, is an ideal place to relocate the light manufacturing sector of China as the trend of global value chain moves. Lin urged the governments of China and African countries to seize this opportunity that can help both China and Africa move a step up the global value chain.

Source Xinhua

Editor Xuefei Chen Axelsson

Commentary: More trust from the West in China-Africa cooperation key to Africa’s takeoff

Commentary: More trust from the West in China-Africa cooperation key to Africa’s takeoff


by Guo Jun

Stockholm, June 5 (Greenpost)– The year 2015 marks the 15th anniversary of the Forum on China-Africa Cooperation (FOCAC), a milestone which has seen China and Africa accelerate their steps in expanding cooperations in various fields for the past 15 years.

Infrastructure projects built by Chinese companies are quickly popping up around the continent. Up to now, China has completed 1, 046 projects in Africa, building 2,233 kilometers of railways and 3,530 kilometers of roads, among others, promoting intra-African trade and helping it integrate into the global economy.

However, as Africa is benefiting from the fruits of trust established with China very long time ago, some in the West have been watching all these with doubtful, or green eyes, hence fantastic theories like “neocolonialism” and “China is exploiting Africa’s resources” are floating up.

Believers of such theories seem to ignore the simple fact that Western powers have been holding their grounds in production of natural resources like oil, gas and minerals in many African countries.

According to a report quoted by the Wikipedia, joint ventures between foreign companies and Nigerian government account for approximately 95 percent of all crude oil output in Nigeria, while local independent companies operating in marginal fields account for the remaining 5 percent. And the top six foreign companies operating in Nigeria are all of western origin, including Shell Nigeria who accounts for 50 percent of Nigerian’s total oil production.

The same story happens in many other African countries: Angola, Zambia, Botswana, etc., a story neglected by some people in the West perhaps because they have taken this for granted for too long to remember.

China has grown into one of the major trading partners with Africa. Winning infrastructure project bids with lower cost, quick delivery and good quality, buying and selling goods for each other’s needs, at both parties’ willingness, aren’t these market economy practices?

“Some say that China is conducting ‘concrete diplomacy’ by helping Africa with infrastructure development. I believe that is what badly needed by Africa in pursuing economic growth,” China’s Foreign Ministry Spokesperson Hua Chunying told a recent press briefing.

Infrastructure projects, investment in manufacture and aids in health sector are China’s main gifts to Africa as the continent strides towards a more integrated and promising one, especially with a continental free trade zone encompassing 26 African countries being close at hand.

Ugandan President Yoweri Museveni told the Financial Times in October 2014 that his main preoccupation was to build efficient infrastructure capable of providing inexpensive services to boost GDP growth to double digit levels.

He said China was a desirable partner in this endeavor not only because of its funding capabilities but also because it desists from interfering in the internal affairs of other countries.

Africa is big enough to consume investment from China and the West. According to the World Bank, an extra 93 billion U.S. dollars is needed every year over the next decade to bridge the infrastructure deficit alone in Africa.

The efficient West-China cooperation on the continent will provide greater opportunities for African countries, particularly in the area of technology transfer, peace and security operations as China is increasing its coordination with United Nations peacekeeping missions.

There should be more confidence and trust from the West in the engagement between China and Africa, and also more trust from the West that China is a reliable partner to cooperate to help Africa loose no time in taking off so as to benefit the whole world. Enditem

Source  Xinhua

Editor  Xuefei Chen Axelsson

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