The examples below are based on Naidu (2007) and a Chinese government website (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 (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
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