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
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