Chinese Companies Encouraged to Invest in AfricaGuangdong Province views Africa not only as a major export market, but also a major investment destination.The province has promulgated a series of preferential policies to encourage manufacturing companies to invest in Africa, such as tax reductions, interest-deducted loans and simplified business visa formalities. Some 15 projects between Guangdong and African countries are now under way, which include a garment manufacturing plant in Egypt, an ethyl alcohol plant in Benin, a motor plant in Angola, a sewing-machine plant in South Africa and a battery plant in Mozambique. Guangdong's economic exposure in Africa began in the 1960s, when it initiated many aiding projects and started to cooperate with some African countries in infrastructure construction. Guangdong considers trade with Africa to be mutually complementary, said Tang Bingquan, vice governor of Guangdong. Besides a large market for Guangdong's products, Africa's abundant timber, oil and non-ferrous metal resources have provided ample fuels and raw materials for manufacturing projects, he said. Africa is an ideal choice for Chinese companies to expand overseas manufacturing bases, said Tang. Guangdong's foreign trade with Africa has been on the rise in recent years with its major trade partners being South Africa, Egypt, Nigeria, Morocco, Algeria, Gabon and Zimbabwe. Trade volume between African countries and Guangdong valued at 1.56 billion U.S. dollars last year, up 11.17 percent on the previous year. |
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