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China’s investments in Africa

Between 1990 and 1997, Chinese investment into Africa amounted to about $20 million, but from 1998 to 2002 that increased six-fold to $120 million. Only about twenty percent of that amount came into South Africa, not as large a share as might have been expected. The report indicates that there are 450 Chinese-owned investment projects in Africa, of which 46 percent are in manufacturing, 40 percent in services and only 9 percent in resource-related industries. In value terms, extractive and resource-related projects comprise a much higher share at 28 percent, but nonetheless 64 percent of the value of Chinese investment in Africa is in the manufacturing sector.

From Stephen Gelb’s ‘South-South Investment: The Case of Africa.’ A chapter from the new FONDAD book: Africa in the World Economy. He also discusses the advantages of South-South investments and the growing trends of intra-African FDI.

The China-Africa figures have of course more than spiked in the last two years - read oil. See China's official Africa Policy, and more stats and comment via the BBC, World Economic Forum, and OpenDemocracy.

Comments

Submitted by R-Squared on
Africa trades a lot with China. African merchants are all over China; most of them run small importing companies. This trend is not new, if you check the immigration data. Many Afircan students study in China, and stay, or come back and forth frequently to do business. It is quite proftiable. IFC should allocate more "trade finance" funds to Sino-African trades

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