Kenya and Africa are set to reap big from Chinese Direct Foreign Investment to fund infrastructural projects in the country in the upcoming Forum on China-Africa Cooperation (FOCAC) summit.
This is after the Chinese Business Council in its latest Chinese Investment in Africa report, posited that the President Xi Jinping administration has spent a staggering Sh6.1trillion ($47billion) in direct foreign investment in Africa over the last 20 years.
The release of the report titled: “China Africa Investment Cooperation; A New Impetus to Africa’s Industrialization” shows that more than 3000 Chinese have invested and developed their businesses in Kenya and Africa at large.
Further, Chinese enterprises have signed contracts for projects in Africa with a total contract value of more than Sh91trillion ($700billion) on building materials, automobiles, household appliances, and agro-processing.
According to the report, the Chinese government has invested in the Ethiopia-Kenya Power transmission project and the Standard Gauge Railways (SGR) among other projects in the African continent.
“Countries such as Kenya, Democratic Republic of Congo, South Africa, Ethiopia and Nigeria have consistently been the focus of Chinese Investment in Africa over the past few years,” reads part of the report.
Already, Tebian Electric Apparatus (TBEA) a manufacturer of power transformers and other electrical equipment has completed transmission and substations in Kenya, Tanzania, Togo, Gambia, Chad, Cameroon, Zambia, Burundi and the Democratic Republic of Congo (DRC).
Speaking ahead of the FOCAC summit, China’s Foreign Affairs Vice Minister Chen Xiaodong said that the summit will have high-level meetings on state governance, industrialization and agricultural modernization, peace and security, high-quality Belt and Road cooperation and the eighth Conference of Chinese and African Entrepreneurs.
Themed “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future” to celebrate friendship and chart the way forward for cooperation, the meeting is expected to bring more than 40 heads of States and governments from Africa including President William Ruto.
According to the organizers, the summit will adopt two outcome documents including the Declaration and the Action Plan, to build major consensus between the two sides and chart a path for implementing high-quality China-Africa cooperation in the next three years.
“Over the 24 years since the establishment of the FOCAC, particularly in the new era, the Forum has always adhered to the principles of planning together, building together, and benefiting together. The development of the Forum has been remarkable, making it a “golden brand” of China-Africa cooperation and a banner for leading international cooperation with Africa and for deepening Global South cooperation,” said Xiaodong.
The Foreign Vice Minister maintained that China is the largest developing country investor in Africa and has remained Africa’s largest trading partner for 15 consecutive years, demonstrating the strong resilience and vitality of China-Africa cooperation.
“China and Africa jointly advocate for an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, jointly promote and implement the three global initiatives, safeguard international fairness and justice, and enhance the global governance system,” he said.
According to Xiaodong, the Third Plenary Session of the 20th Central Committee of the Communist Party of China made strategic plans for further deepening reform comprehensively to advance Chinese modernization, which will bring more opportunities and hopes to countries in the world, including Africa.
He added that the Summit will pool extensive consensus for the two sides to meet challenges and build a broad platform for sharing development opportunities.
“China is ready to seize this important opportunity with Africa to embark on a new journey toward modernization together, further elevate the building of a China-Africa community with a shared future to new heights, and continue writing a new chapter in the mutual understanding, affinity and friendship between the people of China and Africa.”
