China is the single largest contributor of Africa's FDI, says report
Railway - China is investing in Africa heavily, which makes it the single largest contributor of foreign directive investment (FDI) capital and jobs in Africa in 2016, says the Ernst
May 05, 2017: China is investing in Africa heavily, which makes it the single largest contributor of foreign directive investment (FDI) capital and jobs in Africa in 2016, says the Ernst & Young’s (EY) latest Africa Attractiveness report.
According to the report, China has invested in 293 FDI projects in Africa since 2005, totaling an investment outlay of $66.4 billion and creating 130,750 jobs.
The report also states that Chinese FDI into Africa is well diversified across various sectors, covering resource-oriented ones as well as services and manufacturing.
The report further says the Chinese investment is diversified across more countries, covering both resource-rich nations, such as South Africa, Nigeria and Angola and agricultural exporters such as Kenya.
In 2016, jobs created from Chinese FDI projects hit an all-time high more than double the number in 2015 and above three times the number of jobs created by the next biggest investor, the United States.
“Besides trade and FDI, Chinese companies and state-related entities have financed and built many infrastructure projects across the continent, including ports, roads, railways, dams, telecom networks, power stations and airports,” the report said.
One notable example is a Chinese-built railway linking Addis Ababa in Ethiopia to the port of Djibouti launched on October 2016, with an investment of $4 billion.
Photo Credit: Railway Pro