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II.E. Contract Labor and Other Services: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

Written by: International Monetary Fund

Article Overview: Africa is an important market for Chinese enterprises that contract for construction and engineering projects (roads, bridges, schools, shopping centers, housing and office buildings, water conservancy, and power plants).

Free Download - References: Stock Market Development in Sub-Saharan Africa By International Monetary Fund
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II.E. Contract Labor and Other Services: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

Africa is an important market for Chinese enterprises that contract for construction and
engineering projects (roads, bridges, schools, shopping centers, housing and office buildings,
water conservancy, and power plants). Since 2000 Chinese enterprises have been contracted
to build more than 6,000 kilometers of roads,
3,000 km railways, and 8 large- and mediumsized
power plants in Africa. Official
Chinese statistics show that the sum of
“contracted projects,” “labor cooperation,”
and “design consultation” in Africa increased
from US$4 billion in 2004 to US$6.3 billion
in 2005. In 2006 the turnover on contract
labor service went up to US$9.5 billion,
representing 31 percent of China’s offshore
contracted projects and exceeding the total in
1998–2002 (PBC and CBD, 2007; Yang,
2004).
Within trade in services, two-way traffic is
growing particularly fast in tourism. By
September 2006, 17 Africa countries had
become destinations for Chinese citizens and
tourist groups. Namibia, Botswana,
Madagascar, Lesotho, and Ghana had been
added to the list of tourist destinations by the
Chinese government only in the two
preceding years. The number of African
tourists to China has been accelerating
(Figure 7).

IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007

Related Articles
  V. A. Markets for Exports: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES
  What Drives China’s Growing Role in Africa?
  II.D. Foreign Direct Investment: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
  IV. A. Private Traders: THE ROLE OF THE PRIVATE SECTOR
  CONCLUSION: What Drives China’s Growing Role in Africa?

Home > African-Accounts > International Monetary Fund > IIE Contract Labor and Other Services TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
Article Tags: africa countries, african tourists, cbd, chinese citizens, chinese enterprises, chinese government, chinese statistics, contract labor, design consultation, engineering projects, imf, kilometers, labor cooperation, office buildings, pbc, power plants, railways, shopping centers, tourist destinations, tourist groups

About the Author: International Monetary Fund
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The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy.

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