China to invest over $300 billion in Africa, increase trade volume

China to invest over $300 billion in Africa, increase trade volume

The Chinese government is reportedly planning to invest more than $300 billion in Africa over the coming three years. The investment was announced by Chief Dana Chen, Chairman of the China Africa Business Council (CABC).

During the signing ceremony of a Memorandum of Understanding (MoU) between Lagos Chamber of Commerce and Industry (LCCI) and CABC in Lagos, Chief Chen stated that the investment will raise the trade volume between the African continent and China.

Chief Chen added that an increase in trade volume from $30 billion to $300 billion is being targeted during the next three years, ten times the size of the current trade between the two, which is expected to provide great benefit to more businesses in Africa.

She claimed that Nigeria imports too much and needs to achieve a trade balance by exporting as well, which will also make the Nigerian currency strong.

Chen highlighted that there are many areas that can be explored to strengthen the trade relationship between China and Nigeria, such as investing more in logistics, supply chain, and product manufacturing in the African country.

Chief further added that they are also increasing investments to promote the culture in Nigeria as well, calling the country’s creative industry one of the biggest in the world, which can be further developed for exporting to Asian countries and unlock more potential for Nigeria.

Plans for the establishment of ten medical and housing projects for African nations as well as ten poverty reduction and ten agricultural projects were also unveiled during the ceremony, along with military support programs to reaffirm China’s commitment to helping Nigeria deal with its security concerns.

Dr. Michael Olawale-Cole, President of LCCI, had earlier explained that the MoU will further advance the bilateral and diplomatic relations between China and Nigeria and that partnership is important to LCCI as well because it will strengthen the international trade relations it has with China.

Olawale-Cole added that Nigeria is one of the largest trading partners that China has in Africa, with China financing many of its developmental projects as well.

Source credit: https://guardian.ng/business-services/business/china-tasks-nigeria-on-trade-imbalance-raises-stake-in-africa-to-300billion/