Chinese enterprises invest in Africa to jointly build the "the Belt and Road"

On October 21st, China's listed company Senqilin Intelligent Manufacturing Factory began construction in Morocco. This new factory is located in Tangier Technology City, Morocco, covering a total area of 200000 square meters and producing 6 million high-performance sedan and light truck radial tires annually. It is China's first intelligent tire manufacturing factory in Africa. Sen Qilin Group invested 297 million dollars in Morocco, the "bridgehead" of the "the Belt and Road" North African country, to build a 4.0 intelligent manufacturing plant, which shows that Sen Qilin is deeply involved in the construction of the "the Belt and Road".
On the evening of October 17th, Chinese listed company Jiayou International announced that its subsidiary plans to invest in the upgrading and renovation projects of the Zambian Sakania Port and the Ndola Mufulira Road. The total investment of this project is 76.1292 million US dollars, of which the company's investment amount is 60.9034 million US dollars. On October 12th, Jiayou International announced that it is expected to achieve a net profit of 654 million to 747 million yuan from January to September, a year-on-year increase of 40% to 60%. During the reporting period, the company's performance growth was mainly attributed to the strong growth of China Mongolia business and Africa business.
The Shenneng Anso Gu Power Plant in Ghana is currently the first power plant invested, constructed, and operated by China in Africa. The electricity generated from here accounts for one fourth of Ghana's national electricity consumption, solving one fourth of Ghana's electricity demand. At present, Ghana's national electricity coverage rate has exceeded 85%, ranking 6th in Africa. The Laiki Port in Nigeria, invested and constructed by Chinese enterprises, began operation in April this year. It is Nigeria's first modern deepwater port and is known as Nigeria's new national gateway.

With the deepening of the "the Belt and Road" construction in Africa, more and more Chinese enterprises are increasingly confident in the African market and actively invest in real industries in Africa. In the first half of this year, China's new direct investment in Africa reached 1.82 billion US dollars, a year-on-year increase of 4.4%. At present, there are more than 3000 Chinese enterprises "delving deeply into Africa", with private enterprises accounting for over 70% of China's total number of enterprises in Africa, becoming a new force in China's investment in Africa. According to the "Africa Development Dynamics Report" jointly released by the African Union and the OECD this year, China's investment in Africa is at the forefront of the world. From 2017 to 2022, China's investment in non direct green spaces was $74 billion, accounting for 18% of foreign investment in non direct green spaces. China is the largest investor in the East African region, accounting for 20% of foreign investment. It also occupies the top three positions in other regions and is in the first tier alongside Europe and the United States. Its key investment areas include manufacturing, electricity, engineering construction, etc.

Senegal's Ambassador to China, Sira, recently stated that with the continuous development of industrialization in Africa, expanding the industrial chain through investment to promote industrial transformation in Africa has become an urgent need for many African countries, and looks forward to Chinese enterprises bringing more investment to Africa. Within the African continent, coordination among countries will be strengthened, and legal and relevant coordination mechanisms will be utilized to facilitate Chinese enterprises' investment in Africa. International Monetary Fund President Georgieva believes that economic growth in sub Saharan Africa is expected to rise from 3% this year to 3.5% by 2024. She attributed the improvement in the outlook to various factors, including the rebound in tourism and trade, as well as an increase in investment. Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University in the United States, stated in Beijing on October 24th that China's experience of rapid economic growth over the past few decades can provide a "roadmap" for Africa. If China's experience is borrowed, Africa is also expected to achieve "leapfrog economic development" in the future.