Loading...

Chinese firms urged to invest in Africa

Mar 18 2013 16:08
AP
Africa map

According to official Chinese figures, China's trade with Africa has grown from $10bn in 2000 to nearly $200bn last year, driven largely by China's demand for oil and other African raw commodities. (Shutterstock)

Related Articles

China bankrolls SA platinum mine

Chinese firm buys Aurora mine

 

Beijing - Chinese businesses operating in Africa need to follow local laws and put long-term benefits ahead of short-term gains, a Beijing diplomat said Monday, acknowledging that rising trade had created "growing pains" in economic ties.

Chinese companies should work to benefit their African host economies by investing in industries such as power generation, agriculture, textiles and communications that create jobs and generate tax revenues, Vice Foreign Minister Zhai Jun told participants in an African business seminar in Beijing.

"Making quick money and leaving is a myopic action, and 'catching fish by draining the pond' is unethical," Zhai was quoted as saying by the official Xinhua News Agency. He said Chinese businesses in Africa need to compete fairly, respect local laws and customs, and improve worker welfare and environmental protection.

Complaints over business practices have grown as Chinese firms pour into the continent in hopes of winning profits in areas and industries that competitors from the developed world have given up on.

Chinese diplomats were particularly stung by an editorial published in the Financial Times last week by Nigerian Central Bank Governor Lamido Sanusi which criticized China for exploiting the continent's mineral wealth while undermining its manufacturing industries.

"We must see China for what it is: a competitor. We must not only produce locally goods in which we can build comparative advantage, but also actively fight off Chinese imports promoted by predatory policies," Sanusi wrote.

According to official Chinese figures, China's trade with Africa has grown from $10bn in 2000 to nearly $200bn last year, driven largely by China's demand for oil and other African raw commodities.

Africa is also a major investment destination for Chinese companies building infrastructure ranging from hydroelectric projects to telecommunications grids, with a total of more than $15.3bn invested directly by the end of last year, Zhai was quoted as saying.

Such rapid increases had created "growing pains in China-Africa economic and trade cooperation", Zhai said.

"Although volume increased rapidly, there is not much progress in quality improvement," he said.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

lamido sanusi  |  china  |  africa

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
11 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about: STEINHOFF

Steinhoff International, once the darling of fund managers, risks falling out of the JSE top 100.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

If SARB keeps interest rates the same this afternoon, how will this affect your personal finances?

Previous results · Suggest a vote

Loading...