"Investing in Africa" is no longer simply a slogan proposed by
the Chinese government. It now represents real dollars-and-cents
business opportunities.
Statistics show that China had invested US$11.7 billion in
Africa by the end of 2006 and is now the largest investor among
developing countries.
A considerable amount of the investment comes from companies,
especially private firms.
For example, private firms from China's southeast Zhejiang
Province invested US$55.7 million in Africa in 2005.
Of the 800 enterprises that have invested in Africa, only about
100 are state-run companies.
More than 230 Chinese enterprises and joint ventures, such as
Geely, Chery and Huawei, have started operating in Egypt.
Huawei, China's largest private telecoms company, provides
services and products in more than 40 African countries and regions
with sales totaling US$2.1 billion in 2006.
For state-owned enterprises, there has been a massive
change.
"In the past, investing in Africa was a way of developing
friendship," said Yang Deshan, vice president of China
Building-Material Industrial Corporation for Foreign
Econo-Technical Cooperation (CBMC).
"Now it means real economic benefits for both sides," he said,
adding that the CBMC will invest US$50 million to build a cement
factory in Cape Verde.
"This project will be carried out according to commercial
rules," Yang said. "In the past a lot of projects were transferred
to African countries for free."
As they accumulate capital and forex reserves, China's private
firms will invest more in Africa, said governor of People's Bank of
China Zhou Xiaochuan.
(Xinhua News Agency May 16, 2007)