China launches first economic, trade cooperation zone in Africa

[General Duke]

China launches first economic, trade cooperation zone in Africa

 

www.chinaview.cn 2007-02-05 04:55:31

 

Special Report: Chinese President Hu visits 8 African countries

 

Chinese President Hu Jintao and his Zambian counterpart, Levy Patrick Mwanawasa, jointly attend the inauguration of the Zambia-China Economic and Trade Cooperation Zone in Lusaka Sunday. (Xinhua Photo)

Photo Gallery>>>

 

 

 

LUSAKA, Feb. 4 (Xinhua) -- China launched an economic and tradecooperation zone in the Zambian capital of Lusaka on Sunday, the first of its kind established ever by the country in Africa.

 

Chinese President Hu Jintao and his Zambian counterpart, Levy Patrick Mwanawasa, jointly inaugurated the Zambia-China Economic and Trade Cooperation Zone.

 

The zone's establishment is part of China's efforts to fulfill its earlier promises to boost its full-fledged cooperation with African nations.

 

At the Beijing Summit of the Forum of China-Africa Cooperation (FOCAC) last November, Hu announced eight measures to strengthen China-Africa cooperation, including the establishment of three to five trade and economic cooperation zones in Africa in the next three years.

 

"The aim of my African tour is to consolidate the traditional friendship between China and Africa, implement the results achieved at the Beijing summit of FOCAC, expand pragmatic cooperation and seek common development," Hu said at the inauguration ceremony.

 

The Chinese government encourages and supports competent Chinese enterprises to invest in the zone and make contribution to Zambia's economic development and social progress, Hu said.

 

Mwanawasa pledged to further improve the investment environment and hoped that more Chinese and foreign enterprises will settle in the zone, bringing along with them know how and expertise necessary for the development of the zone and Zambia at large.

 

The zone, located in Zambia's Copper Belt Province, is aimed at forming a production chain with Chambisi Copper Smelter as the core enterprise.

 

The construction of the zone is expected to boost the development of Zambia's light industry and the sectors of construction materials, home electrical appliance, pharmacy and food processing, increase the country's exports and create job opportunities for locals.

 

Hu arrived in Zambia on Saturday on a three-day state visit. Zambia is the fourth leg of Hu's eight-nation African tour, which has taken him to Cameroon, Liberia and Sudan. Hu will also travel to Namibia, South Africa, Mozambique and Seychelles.

[General Duke]

Chinese President Hu Jintao and his Zambian counterpart, Levy Patrick Mwanawasa, jointly attend the inauguration of the Zambia-China Economic and Trade Cooperation Zone in Lusaka Sunday. (Xinhua Photo)

[General Duke]

Africa to be more attractive for Chinese investors

 

www.chinaview.cn 2007-02-03 11:44:20

 

NAIROBI, Feb. 3 (Xinhua) -- An increasing number of Chinese enterprises will consider Africa as the destination of their investment as the ancient continent has seen a better investment environment in recent years and the Chinese government has put forward a series of measures to encourage Chinese enterprises to start business here.

 

The total of China's investment in Africa has reached 6.27 billion U.S. dollars by the end of 2005 and it has been channeled to the fields such as natural resources, infrastructure, architecture, textile, transportation and power.

 

The contracted projects undertaken by the Chinese side in Africa have ranged from house building, petrochemistry to electricity, transportation and telecommunication.

 

According to the statistics from the Import and Export Bank of China, over 100 enterprises of the 800 Chinese businesses with investment in Africa are middle or large-scale state-owned ones, while the majority of the rest are individual-run.

 

The extensive presence of Chinese enterprises enables them to be an unneglectable force in African business sector.

 

A fundamental reason for Africa's growing attraction to the Chinese enterprises is the improvement of investment environment in the continent. African economy has stepped out of the shadow of a lasting downturn and embraced a rare opportunity for development since 2003.

 

As the International Monetary Fund forecast, African countries will have an average economic growth rate of 5.9 percent this year. A report from the World Bank also pointed out that two-thirds of African nations made at least one reform to improve their business environment in 2005-2006, among which Tanzania and Ghana staged outstanding performance.

 

The tendency towards political stability, the steady economic growth, cheap labor force and favorable measures tailored to attract foreign investment have guaranteed that Africa is in a prime time in terms of investment environment since the 1970s.

 

In addition, the encouragement measures put forward by the Chinese government have added an impetus to the efforts of the Chinese enterprises to gain access to Africa.

 

Beijing announced a series of steps to strengthen the Sino-African economic and trade cooperation during the Beijing Summit of the Forum of China-African Cooperation (FOCAC) last November, offering an unprecedented new opportunity for the Chinese enterprises to invest in Africa.

 

The eight steps announced by Chinese President Hu Jintao to boost the pragmatic cooperation with Africa and five proposals put forward by Chinese Premier Wen Jiabao last November have all created sound conditions for the Chinese business to make investment in Africa.

 

"Stepping into Africa" brings about a win-win result for Africa and China.

 

The latest report from the World Bank said that China's investment in Africa is playing a positive role in boosting African economic growth and such impact will be greater in the future.

 

Gobind Nankani, the World Bank's vice president for Africa region, said last November that African countries are benefiting from increasing Chinese investment, and will benefit more with more technologies from the Chinese enterprises.