Qiu Shi, a magazine of the Communist Party Central Committee, recently published an article discussing the strategy of investing in Africa. The author expressed the belief that China’s pace of entering the African market is speeding up. China’s primary investment focus has shifted from mines to infrastructure-building. In its plans for the future, agricultural and financial cooperation are the next steps. For the past five years in a row, China has been Africa’s largest trading partner. The trade volume in 2013 was over US$200 billion. China has been helping many African countries turn natural resources into economic power sources by spending money made in mining to develop hospitals, roads, the education system, and water processing facilities. Africa’s high speed economic growth is opening up many new market segments, such as communications. For example, Large Chinese companies such as ZTE, Huawei, and Shanghai Bell have already established footholds in the African communications market. With more and more Chinese investments pouring in, the Chinese currency has become the number one choice of reserve currency for Angola, Nigeria, Tanzania, Ghana, Kenya, and South Africa.
Source: Qiu Shi, May 7, 2014