High-quality China-Africa investment is win-win for both: says Foreign Ministry

Containers are seen on a vessel at the new container terminal in Walvis Bay, Namibia. (Photo: Xinhua)

Chinese companies' investment in Africa is a win-win, and high-quality China-Africa cooperation on investment can be expected in the future, a spokesperson from China's Ministry of Foreign Affairs said on Monday.

The comment came after a report released by the China-Africa Business Council, stated that Chinese enterprises are becoming a significant force to support Africa's development, boosting its economic development and improving people's livelihoods throughout the region.

The report said investments by Chinese enterprises in Africa's infrastructure, manufacturing, and agricultural processing, among others, have helped host countries accumulate foreign currency reserve, promote technology transfers, and eliminate supply constraints, Xinhua News Agency reported on Thursday.

Based on the report's estimates, China's total direct investment in Africa exceeded $56 billion aat the end of 2020, with private companies accounting for about 70 percent of the total.

China's investment in Africa is stable, Wang Wenbin, spokesperson of Ministry of Foreign Affairs, said, citing data that over the past 20 years, as China's direct investment in Africa has grown by an average of more than 25 percent annually.

Despite the coronavirus pandemic, China's investment in Africa has increased from $2.71 billion in 2019 to $2.96 billion in 2020.

Wang said the natural strengths of China and Africa are highly complementary, with Africa having a huge demographic dividend, while China has advantages in capital and technology.

He said new areas such as mid-to-high-end technology manufacturing, medical and pharmaceuticals, digital economy, and aviation industry have also become new hot spots for Chinese investment in the continent.

Wang noted that Chinese companies' investment in Africa is conducive to strengthening global supply chains, and Chinese companies have made notable contribution to social stability and economic prosperity of African countries by carrying out technology transfers, strengthening local procurement, and creating good paying jobs.

Chinese enterprises in Africa have actively supported local COVID-19 containment and prevention, and provided materials, vaccines, and technical assistance there, the report said.

Despite the pandemic, the global economic slowdown and trade protectionism, Chinese companies have remained optimistic and willing to invest more in Africa, the report said.

A special survey conducted by the China-Africa Business Council on the reinvestment of nearly 100 major private enterprises from June to July 2021, found that the proportion of reinvestment in Africa is around 30 percent.