Economy

Key African economist hails China's investment

By Li Xiaokun and Zhou Wa (China Daily)
Updated: 2011-01-31 07:06

BEIJING - China is winning more understanding and recognition in Africa, Chinese experts said after a key African economist said Chinese investment is "really largely positive" at the World Economic Forum (WEF) in Davos, Switzerland.

Such views will benefit both sides as positive opinions from Africa will encourage more Chinese companies to invest in the continent, they said.

Late last week, the Voice of America (VOA) website quoted African Development Bank Chief Economist Mthuli Ncube as saying that Africa welcomes Chinese investment and that China has become a valuable partner of the continent in many ways.

It is rare for such remarks to appear in mainstream US media as their reports on Chinese investment in Africa usually focus on Beijing's Africa policies and claim that it serves China's own interests.

China's friendship with Africa dates back to the 1950s, when Beijing backed liberation movements on the continent battling colonial rule and establishing new nations.

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With China's economic surge since 1978, more and more Chinese companies are investing in Africa and Beijing has offered huge assistance to the continent without binding conditions.

"China is willing to play a role in stimulating investment, which Africa sorely needs," the VOA report said, quoting Ncube, who was attending the WEF.

In addition, Ncube said China is beginning to play a larger role in providing humanitarian aid to poor African countries.

With regard to the welfare of local workers and the local communities, Ncube said China should do more to create partnerships with local people.

"But, I think really largely the investments have been positive," said Ncube. "They have created jobs and I welcome these new industrial parks."

In Beijing, South African Ambassador Bheki Langa said on Jan 26 that close economic relations with China benefit both China and Africa and are a far cry from the Western colonial exploitation that undermined the development of the continent.

Resource-rich Africa can provide resources that China needs for its own development, said Langa.

However, there is "no colonial interest" in their relations, he said, adding that China's commitment to African development is "in line with the world's development".

According to Chinese statistics, trade between China and South Africa soared 59.5 percent to nearly $2.6 billion in 2010.

He Wenping, chief of African studies at the Chinese Academy of Social Sciences (CASS), said such remarks are likely to have a very positive impact on Sino-African cooperation.

He Wenping said that such increasingly positive remarks were being made from the African side partly due to Chinese companies paying more attention to interaction with local communities.

"It is hard to predict the impact of Ncube's remarks on Chinese investment in Africa, but at least it meant that the international community heard the opinion from Africa itself, not the West, on the issue at Davos," said Yang Lihua, another African analyst at the CASS.

The remarks came on the eve of the 16th African Union Summit, which started on Sunday in Addis Ababa, Ethiopia. Beijing has sent a special envoy to the summit, which aims to reach a common strategy on resolving Cote d'Ivoire's political crisis and tackling other continental trouble spots.

Liu Zhenmin, the envoy and assistant foreign minister, said in an interview with Ethiopia's Walta Information Center, a private news and information service, on Saturday that the schedule of the summit reflected the strong desire of African countries to seek stability, development and strength through unity.