Chinese Investment in Zambia Projected to Grow By U.S.$3 Billion

THE Chinese investment in Zambia will go up by US$3 billion by the year 2014 and will bring many benefits for the local people, an expert has said.

Bejing Axis general manager, Nitesh Dullabh said yesterday that the Chinese investments in Zambia and elsewhere in the world were worthwhile because of the many benefits they come with.

In his presentation on “China’s Importance to the African Resources Sector,” at the Zambia International Mining and Energy Conference (ZIMEC) and Exhibition at Mulungushi International Conference Centre, Mr Dullabh said by 2014 Chinese investments in Zambia will go up by $3 billion.

He said that unlike investors from some other parts of the world, investors from Chinese are not only targeted at service provision but cater for key sector like infrastructure.

Chinese investment in Zambia and in Africa as a whole has increased tremendously in the last one decade.

He said the continent should brace for more because the investors were unstoppable.

He said from 1995 to 2009, the Chinese export from Africa rose from $1.4 billion to a whopping $42.7 billion and was actively involved in supporting the manufacturing sector in the host countries.

He said China believed that Africa is the next real spot in the manufacturing sector, hence its active involvement.

Mr Dullabh said Zambia has been one of the greatest beneficiaries of Chinese investment with the energy sector alone accounting for more than $2.5 million of the ongoing projects.

In terms of the economic zones, he said Zambia houses two of China’s seven zones in the world.

Mr Dullabh said that African countries viewed China as an alternative source of less costly capital as compared to the International Monetary Fund and the World Bank.

On the negative note, he said some people viewed China as the source of cheap goods which were suffocating the local manufacturing industries.

He said there are still some allegation of importation of cheap labour from the vast Asian country.