Promoting industrialization in Africa was among the most important topics at the recent G20 meeting in Hangzhou. China itself is a major catalyst of this movement, with 100 billion dollars in direct investment to the African continent expected by 2020.

The Chinese investment in African countries is backed by the China-Africa Development Fund.

The discussions during the meeting focused on finding the best solution to improve the industrial sector in Africa by investing in building and upgrading of industrial parks as well as infrastructure and human capital in the African continent.

Ethiopia, Kenya, Tanzania, Congo-Brazzaville and South Africa have been chosen to act as the base in Africa’s industrialization efforts, with Ethiopia being the major recipient. Egypt, Angola and Mozambique have been chosen as priority partners for production capacity cooperation.

China’s industrial policy in Africa aims to develop the industrial sector and increase the cooperation between China and the African continent. Africa with its untapped consumer markets, with its low figure of competitors, with its preferential trade agreements with the Western markets, with its proximity with Europe and US, and with its cheap labor, presents the ideal place for Chinese and other Asian manufacturing investments.

Back