Chinese enterprises key force boosting Africa’s uplift

BEIJING: Chinese enterprises are becoming a significant force behind Africa’s development, boosting its economic development and improving people’s livelihoods in the region, said a report released Thursday by the China-Africa Business Council (CABC).
With rapidly increasing investment in recent decades, Chinese enterprises have facilitated trade and investment in Africa. They have also assisted the region with the COVID-19 fight and poverty reduction, said the report on Chinese Investment in Africa.
Investments by Chinese enterprises in Africa’s infrastructure, manufacturing, and agricultural processing, among others, have helped host countries accumulate foreign reserves, promote technology transfer, and eliminate supply constraints, it said.
Based on the report’s estimates, China’s direct investment stock in Africa should exceed 56 billion U.S. dollars by the end of 2020, with private companies accounting for about 70 percent of the total.
Lin Yifu, dean of the Institute of New Structural Economics at Peking University, said Chinese investment has helped turn Africa’s resources into competitive advantages and strengthen the region’s weak links in funds, technology, and infrastructure.
Chinese enterprises in Africa have also actively supported local COVID-19 containment and prevention measures, promoted the resumption of work and daily life, and provided materials, vaccines, and technical assistance, the report said.
Despite the pandemic, the global economic slowdown, and trade protectionism, Chinese companies have remained optimistic and willing to invest in Africa, the report said.
A special survey conducted by the China-Africa Business Council on the reinvestment of nearly 100 key private enterprises from June to July 2021 found that the proportion of reinvestment in Africa is around 30 percent.
Wang Licheng, chairman of the CABC, believed that Chinese enterprises, especially private companies, will play an active part in promoting the high-quality China-Africa trade and investment cooperation, contributing to the region’s social and economic development. – Agencies