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China's direct investment in Africa rises rapidly

cctv.com | Updated: 2013-03-26 10:17

After visiting Russia, President Xi will continue his trip to Africa. This comes as economic relations between China and many African states are growing closer, especially under the South-South cooperation framework. A good example is the West African country of Senegal, where China's direct investment has been rising at a fast pace across different sectors.

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Thousands of Chinese companies have invested in Africa and most of the investment has gone into energy, industries, transport, trade, mining, construction, project financing, manufacturing and China's State-owned oil companies are active throughout the continent. In West Africa, the cooperation between China and Senegal is doing well since the resumption of diplomatic relations between the two countries in 2005.

"The commercial exchanges between China and Senegal have grown by more than 30 percent per year and they are estimated to be $540 million today and we think that it is an excellent progress for our two nations."

Chinese enterprises adopt open, transparent and multiform ways of cooperation and are firmly against monopoly and exclusiveness. They jointly exploit and utilize resources with African countries and international enterprises.

"We have set up a metal factory in Senegal which employs 650 workers of which 30 Chinese. What we are trying to do is to develop the metal industries that will generate employment and strengthen the cooperation between China and Senegal. We are assisted by the government and welcomed by the local population. The only problem we are facing is the lack of proper support for the heavy industry. There is a shortage of factory replacement parts and we need skilled workers in the sector. "

China's direct investment in some parts of Africa meets many obstacles namely the backward infrastructures, the single economic structure, the low production supporting capacity, the unstable political situation and unfavorable security situation in some African countries and the deficiency of local supporting funds due to economic constraint. Chinese companies are also faced with the competition from those transnational corporations operating in Africa.

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China's direct investment in Africa rises rapidly

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