Private Chinese Direct Investment in Africa: Some Examples

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References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund

The examples below are based on Naidu (2007) and a Chinese government website
(http://preview.english.mofcom.gov.cn). The examples are by no means comprehensive; nor are they
necessarily consistent with official statistics. Nevertheless, they suggest the scope and scale of private
Chinese investment in Africa.

The examples below are based on Naidu (2007) and a Chinese government website
(http://preview.english.mofcom.gov.cn). The examples are by no means comprehensive; nor are they
necessarily consistent with official statistics. Nevertheless, they suggest the scope and scale of private
Chinese investment in Africa.
• Since 1997 Chinese businessmen have invested US$24 million in a textile mill in Zambia. In
recent years they have also poured more than US$300 million into mines, manufacturing
projects, construction companies, and agriculture.
• COBEC, a Beijing-based company, plans to rehabilitate the Kamatanda copper and cobalt
mines and three processing plants in Katanga province, Democratic Republic of Congo, in a
deal worth US$27.5 million.
• Chinese companies have been operating since in the Zambezi province of Mozambique,
logging and shipping timber products to China.
• Guoji Group, based in central China’s Henan Province, has set up an economic cooperation
zone in Sierra Leone that has attracted about 20 Chinese small- and medium-sized enterprises
producing necessities like spring mattresses, roofing tiles, hair lotions, and other light
manufactures.
• Huawei Company, whose sales in SSA countries exceeded US$1 billion, has become the
largest wireless technology CDMA product provider in the region.
• ZTE Corporation International has signed an agreement with Mundo Startel, the Angolan
fixed-line telecommunications utility, for the sale of telecommunications equipment. ZTE
would invest US$400 million to build Angola’s telecom network, upgrade the military
telecommunications system, and construct a mobile phone factory.
• Hashan Company in eastern Zhejiang Province is tripling its investment in Nigeria to US$6
million to boost the local shoemaking industry.
• Global Trading, a subsidiary of a Beijing-based company, spent US$10 million to renovate
the Bintumani Hotel in Sierra Leone. The renovated hotel began operating in early 2003. In
return, Global Trading was contracted to manage the hotel for 10 years, with an option to
renew the lease at the end of the term.

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

II.D. Foreign Direct Investment: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

IV. B. Private Investors: THE ROLE OF THE PRIVATE SECTOR

IV. C. Private Contractors and Builders: THE ROLE OF THE PRIVATE SECTOR

CONCLUSION: What Drives China’s Growing Role in Africa?

SME's - WIll China be the next colonial power in Africa

III. A. China’s African Policy and New Commitments for 2007–09: THE ROLE OF CHINA’S PUBLIC SECTOR

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

V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES

III. C. Commercial Policies: THE ROLE OF CHINA’S PUBLIC SECTOR

SME's - Africa versus the Far East

SMEs - surviving the recession in Africa

What Drives China’s Growing Role in Africa?

5.1 Investment is vital for an economy to diversify: Economic Report on Africa 2007

Wall Street, “Africa is Investing’s Final Frontier”

II.B. Official Development Assistance and Debt Relief: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

SME's - The attractiveness of Africa

V. A. Markets for Exports: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES

IV. A. Private Traders: THE ROLE OF THE PRIVATE SECTOR

Africa, China and Investment

SMEs - the African opportunity that is been squandered

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