China eyes Africa´s investment potential

cctv.com 12-16-2003 09:40

Africa is a continent rich in resources and its business climate is characterized largely by unrealized potential. But the continent's gradual opening and China's need to diversify its overseas markets mean an increasing number of Chinese companies are putting their money into Africa.

An oil-field in the northeast African country of Sudan is China's biggest project in the African continent. It's The China National Petroleum Corporation set up shop in Sudan in 1997 and has so far ploughed 2.4 billion US dollars into the local oil industry.

The investment plays a vital role in tapping the unexplored oil reserves in Sudan. The project has brought the Sudan Government up to 4 billion US dollars in income. On top of that, the oil project has helped Sudan transform itself from a net oil importer to an oil exporter within just six years.

"We have very mature technology and experience and we use those assets in African countries. We can speed up oil-field development as well as accelerate economic development. It benefits the host country and also the oil companies," Zhou Jiping, assistant president of China National Petroleum Corporation.

The China National Petroleum Corporation is just one of the 600 or so Chinese companies trying to explore the business opportunities in Africa.

Africa and China have long-standing relationships and China has been an economic aid donor to Africa. All this has laid a good foundation for Chinese businesses to become players in Africa. The argument is that economic cooperation is in the interests of both parties.

"In terms of capital, resources, and market, China and Africa really complement each other. Our mature technology has good applications in Africa in areas such as textiles, paper making and radio and TV set production. And our investment in Africa has not only brought technology, equipment, and capital, but also job opportunities," said Wang Wenming, general manager of Beijing Yeaco Investment Consulting.

A survey by the United Nations in 2000 suggested that around one third of multi-national corporations would expand their investment in Africa. The Chinese government is behind the moves made by this country's businesses.

"The Chinese government will continue to offer help to Africa. And, we will encourage Chinese businesses to launch joint-ventures in African countries," said Lu Guozeng, assistant minister of Chinese Foreign Ministry.

Africa's business potential doesn't come without risk. But as China National Petroleum maintains, the effort is worth it.

"Risk exists in Africa and we need to recognize that. Most countries are developing countries and life is hard. Working conditions are tough and there's the problems of disease and security. But because we are very successful in Sudan, we think we can weather the difficulties," Zhou Jiping, assistant president of China National Petroleum Corporation.

China has learned and benefited from the experiences of other countries since it opened to the outside world two decades ago. Now it's time for the best Chinese companies to go out and see what opportunities abroad. And, Africa, with its huge potential, is becoming a popular destination for ambitious Chinese firms wanting to extend their business reach.

Editor:Han  Source:CCTV.com