Chinese investment in Africa is increasingly shifting towards the manufacturing sector as the Asian nation diversifies out of primary sectors such as agriculture and mining, said the World Bank, commenting that the continent needed to create an investment-conducive environment.
The World Bank released its 2015 Investment Africa report at the Investing in Africa Forum held in Addis Ababa in Ethiopia earlier this week, commenting that a large share of China’s investment in Africa has traditionally been in extractive industries and construction; investment in manufacturing has increased in recent years.
China’s cumulative investment stock in the manufacturing sector in Africa grew 10% year-on-year to US$2.4 billion at the end of 2011 and accounted for 15% of Chinese foreign direct investment (FDI) in 2013.
“There is also a shift in FDI from China within the manufacturing sector towards higher value-added activities,” the WB said.
“Manufacturing offers an entry point for industrialisation, and by attracting increased FDI African countries can benefit from the skills development, management experience, technology transfer, and integration into the global value chain,” said a World Bank spokesperson.
Chinese investment in Africa shifts towards value-added manufacturing
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