China-Africa trade grows tenfold in a decade

by Trust Matsilele 0

These revelations were announced at the China-Africa Investment Forum.

The forum, now in its second year in China, is designed to provide Chinese enterprises intending to expand into the African market with information on investment environments, economic prospects and trade opportunities.

“As Africa’s economies grow continuously, Chinese enterprises are keen to invest and expand business in Africa, but we cannot turn a blind eye to the challenges including sophisticated economic and trade environments, to-be-improved financial services by local banks, and lack of Chinese banking network,” Zhang Wei, Vice Chairman, China Council for the Promotion of International Trade said.

Jerry Zhang, chief executive officer of Standard Chartered China noted that trade growth has been substantial with China-Africa trade having grown more than tenfold over the last decade.

Wei Jianguo, secretary general of China Center for International Economic Exchanges said, while opportunities existed for Chinese enterprises in Africa, it was important for them to choose the appropriate industries, projects and partners.

Over 2,000 Chinese enterprises have invested in Africa and stock of China’s direct investment in Africa was estimated to top 20 billion US dollars by the end of 2012 with the direct investment in 2012 estimated to be nearly three billion US dollars.

(READ MORE: China-Africa relationship still growing strong)

Africa enjoys rich natural resources and has achieved robust economic growth in recent years, which create ideal opportunities of long term investment for Chinese enterprises.

According to the World Bank, Africa is estimated to experience a 5.5 per cent economic growth in 2014 due to investment flows. Earlier in the year, the World Bank had also predicted a 5.1 per cent forecast and the revised figure validates improved growth prospects.