China maintains investment cooperation intensity with Africa

16:54, October 28, 2009      

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China has kept up its intensity for investment cooperation with Africa since the outbreak of global financial crisis in 2008. By the end of the year, disclosed an official of the Ministry of Commerce on Tuesday, it had thrown in 49 African countries and regions a total input of 26 billion US dollars in all kinds of investments, of which 7.8 billion dollars was a stock of direct investment.

China's overseas direct investment (ODI) reached 55.91 billion US dollars in 2008, of which 5.49 billion dollars was the direct investment for Africa, making up 9.8 percent of the country's ODI. In the first six months of 2009, China made a non-monetary direct investment of 875 million dollars, an increase of 78.6 percent year-on-year. So, Africa is one of the regions with a relatively fast growth for Chinese ODI.

Meanwhile, Africa has become China's second largest engineering contracting market. By late 2008, China had made deals for contract projects worth 126.3 billion dollars in Africa and completed a turnover of 68.1 billion dollars. And in the first three quarters of 2009, China completed the contract engineering business turnover of 17.84 billion dollars, up 41.2 percent year-on-year.

Moreover, China has scored initial success in Africa with the establishment of economic and trade cooperation areas, and some of these cooperation areas have turned considerably sizeable and begun yielding good economic returns. Currently, 23 additional investment projects for these areas of cooperation are being negotiated, and 12 of them have signed letters of intent for investment.

Chinese companies' economic activities have played a positive, activated role in the economic development of African nations, and also made a due contribution to social progress in localities by their specific, concrete deeds.

While going all out to render an aid to agriculture, Chinese enterprises are also encouraged to invest in Africa's agro-business. Overall, the investment in Africa's agriculture is geared at addressing the food shortage issue facing African nations and raising their capacity for self-development in agriculture. The Chinese government is, nevertheless, backing up Chinese firms in meeting the interest demands of African nations and benefiting their people. As of the end of 2008, Chinese companies had invested in Africa for the establishment of 72 agriculture enterprises, with a direct investment of 134 million US dollars coming from the Chinese side.

On top of this, the Chinese government has always urged Chinese firms to partake in the infrastructure development in African countries. A large number of construction projects China took up in Africa have not only complied with urgent needs for local economic growth and the daily life of local people. And they have been widely acclaimed for their reasonable price, super-quality and swift delivery.

Especially at the successful Beijing Summit of the Forum on China-Africa Cooperation held in November 2006, the Chinese government announced a package of 2-billion-dollar preferential buyer's credit to Africa in a bid to help African nations with their infrastructure development. So far, this preferential buyer's credit has arranged a total of 11 projects around the continent with a combined contract value of 2.784 billion dollars.

As a matter of fact, a growing number of Chinese firms have worked diligently to expand employment and step up the training of local workers with particular heeds given to the use and vocational training of senior staffs. A consortium formed by China's International Trust and Investment Co. (CITIC) and China Railway Construction Engineering Group has undertaken the 1,216-km-long Algeria East-West Expressway and created approximately 100,000 jobs for people in Algeria. In another development, the China National Complete Plant Import & Export Corporation (CNCPIEC) has succeeded in managing by lease sugar plants or refineries in Togo, Madagascar, Sierra Leone and Benin. This has not only brought the related African countries a sum of 20 million dollars in tax income but offered additional 8000 jobs for people in these countries.

By People's Daily Online and contributed by PD reporter Gong Wen
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