China to increase investments in Africa

By Eric Biegon in Beijing China

The Chinese government has disclosed that it is ready to increase its investments in Africa.

The country’s ministry of Commerce however says it is the responsibility of African countries to give adequate information on areas of investment which the Beijing administration should inject more resources.

Statistics indicate that by the end of 2015, the stock of China’s investment in Africa hit 34 Billion US Dollars, which is 60 times compared to the year 2000. Furthermore, the peak of China’s trade volume has reached 220 Billion US dollars, three times compared to the year 2000.

But Chinese government says many areas of investments remain unexplored. And this is where it wants African governments to be more proactive.

“We need specific grounds to work on. Both sides should do enough visibility studies on the mode of cooperation and model of finance to expand the ability of Africa to improve itself.” Top ministry of commerce officials said.

The ministry argues that Africa is a continent of 54 countries with situations which are vastly different. In its opinion, there must be precision in terms of projects to invest in.

Mr. Wang Dong, who is a director at the department of African affairs in the Ministry of Commerce, further denied claims that the Asian economic giant has concentrated its investments in bigger economies of Africa like Kenya, Tanzania, South Africa and Ethiopia compared to the smaller economies.

“There are many areas of growth but we need more information from the local countries. African countries should put much effort in providing required information. For instance, they can deliver much deeper and comprehensive information through our embassies” He charged.

Addressing a group of African journalists, currently working under China Africa Press Center, in Beijing on the status of Chinese cooperation with Africa, Wang was of the opinion that a large number of Chinese companies are eager to begin operations in Africa. He however claimed that little information is available on areas to be explored.

“With abundant information, Chinese companies will come to Africa.” He stressed.

He however disclosed that the conditions in host countries to a large extent dictate the level of investments they are likely to receive from China.

“We need favorable conditions and environment. Africa countries must provide a conducive environment for business.” Noted Mr. Wang

Even so, he maintained that president Xi Jinping’s administration has increased investments in the so called smaller economies by more than 6 percent in the last one year alone.

The Communist Party of China led administration has drawn 10 cooperation areas with Africa ranging from Industrialization, Agriculture, Infrastructure, Green development, Trade & Investment, Poverty alleviation, Healthcare, Human resource, social program as well as Peace and security.

According to implementation timetable, 2017 remains a critical year and China says it is committed to it until they all become a reality.