China increases investment in Africa

China has been striving to enhance investment and financial cooperation with African countries to improve the quality and level of China-Africa cooperation, according to a white paper released on Thursday.

China’s direct investment in Africa increased from $1.44 billion to $2.52 billion, with an annual growth of 20.5 percent from 2009 to 2012, Xinhua reported citing the white paper on Sino-Africa economic and trade cooperation published by the Information Office of the State Council.

Currently, over 2,000 Chinese enterprises have invested in more than 50 African countries and regions, covering the industries such as traditional agriculture, mining, construction, resource product processing, industrial manufacturing, finance, commercial logistics and real estate.

By the end of 2012, China had signed bilateral investment treaties with 32 African countries, and established joint economic commission mechanisms with 45 African countries.

At the 4th Forum on China-Africa Cooperation Ministerial Conference in 2009, China announced the establishment of a special loan for small and medium-sized African businesses, of which the contract loans totalled $1.03 billion by the end of 2012, with $666 million already granted.

As a key investment sector, China’s manufacturing enterprises had directly invested $1.33 billion in the 2009-2012 period towards African countries.

Besides, China’s investment also helped Africa in medical treatment, education and social cares like building orphanages and poverty relief.

Meanwhile, African enterprises started increasing investments in China as Africa’s economic growth strengthened recently. Africa’s direct investment in China stood at $14.24 billion by the end of 2012, up 44 percent from 2009.

-IANS