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Chinese firms’ direct investment in Africa rises despite Covid-19
- US$2.96 billion invested in Africa by Chinese enterprises in 2020, up from 2019’s US$2.7 billion
- 12 nations have accounted for two-thirds of total investment by Chinese firms in the continent, according to China-Africa Business Council
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China’s foreign direct investment in Africa grew in 2020 year on year despite the coronavirus, the latest figures show.
The Beijing-based China-Africa Business Council (CABC), which promotes trade and investment, has released a report detailing how much Chinese companies have invested, and where.
The cumulative total of US$47.4 billion invested by the end of 2020 included US$2.96 billion last year, according to Chinese commerce ministry data – up from 2019’s US$2.7 billion. A United Nations report showed that global foreign investment in Africa fell 16 per cent in 2020.
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The CABC found that 12 countries accounted for two-thirds of the total since Chinese companies began investing in the continent. They included middle-income countries – South Africa and Egypt – and resource-rich nations, in Nigeria, Angola, the Republic of Congo, Zambia, Ghana, Algeria and the Democratic Republic of Congo (DRC).
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There was also substantial investment in Ethiopia, Kenya and Tanzania, which lie along a route for the Belt and Road Initiative, China’s transcontinental infrastructure and investment strategy.
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