In good taste: A worker prepares loaves of bread at a bakery in Hodan district in Mogadishu, Somalia. China’s investments in Africa encompass a wide range of sectors, including construction, manufacturing, technology, retail, agriculture and finance. — Reuters
BEIJING: The diverse nature of Sino-African cooperation and its highly complementary trade structure will play a key role in supporting the economic and social development of both sides in the years ahead, government officials and business executives say.
The optimistic outlook is underpinned by shared economic interests and their efforts to enhance synergy between the Belt and Road Initiative and the many national development programmes of African governments, such as Kenya’s Vision 2030, Ethiopia’s Growth and Transformation Plan II and Egypt’s Vision 2030.
These plans aim to boost economic growth and job markets in their respective countries, they added.
Since China and Africa are keen on green and innovation-led growth, they will expand cooperation in production capacity, infrastructure, new energy, agriculture and modern services, as well as new and high-tech industries, opening up new prospects for a mutually beneficial relationship in the coming years, said Jiang Wei, director-general of the department of western Asian and African affairs at China’s Commerce Ministry.
China’s accumulated investment in Africa exceeded US$47bil (RM213bil) by the end of 2022, making it the fourth-largest source of investment on the continent.
Over 3,000 Chinese companies, such as China Railway Construction Corp Ltd, Huawei Technologies Co Ltd and Great Wall Motor Co Ltd, have invested in Africa and employed a large number of locals, data from the ministry showed.
Jiang said Chinese investments in Africa encompass a wide range of sectors, including construction, mining, manufacturing, technology, wholesale and retail operations, agriculture, real estate, finance and eCommerce.
Moreover, there has been a surge in equity participation, mergers and acquisitions, and investments through private companies.
Private enterprises account for over 70% of Chinese businesses operating in Africa and have established themselves as a significant driver of investments in this fast-growing market.
Capital invested by Chinese companies soared 24% year-on-year (y-o-y) in the first four months of 2023, highlighting the resilience of economic and trade cooperation between China and Africa, as well as the confidence of domestic businesses in the African market, according to the commerce ministry.
China Southern Airlines, which began operating its first direct flight from central China’s Hunan province to Kenya in June 2019, increased the frequency to twice per week in April.
The Chinese airline, recognizing the escalating trade volume between China and Africa, and the exponential growth of eCommerce, said rising demand for goods delivery services presents favourable prospects for logistics companies to extend their operations into Africa.
China consistently supports the process of African integration as well as its urbanisation and industrialisation.
Li Fei, Commerce Vice-Minister, said the nation is willing to sign or update agreements related to investment promotion and protection, as well as avoidance of double taxation with several African countries.
The aim is to enhance liberalisation and facilitate trade and investment cooperation.
China has maintained its position as Africa’s largest trading partner for 14 consecutive years.
Their total trade value surged 11.1% y-o-y to US$282bil (RM1.28 trillion) in 2022, with imports from Africa amounting to US$117.5bil (RM533bil), data from China’s General Administration of Customs showed. — China Daily/ANN
