A Malawian cotton project which was successfully implemented in Balaka with funds from the Chinese Government has been placed among most successful Chinese ventures in Africa.
The project was featured as one of the success stories at a two-day Forum for Global Production Capacity and Business Cooperation held in Hubei, China.
And China Africa Development Fund (Cad Fund) has since described the Malawi project as clear proof that the investment environment in Africa is conducive for Chinese investment.
“This is one of the famous investment projects that we funded in Africa which created thousands of jobs and benefitted several thousands of people in cotton farming,” said the fund’s representative, Liu Jie.
Cad Fund, with an initial capital injection of $5 billion bankrolled 86 investment projects, cutting across various sectors, in 36 African countries.
However, the Fund has been recapitalised with an injection of another $5 billion and seeks to encourage more investments in Africa.
During the opening ceremony of the forum, China’s Director General for African Affairs in the Ministry of Foreign Affairs, Lin Songtian, challenged countries like Malawi to initiate large scale export oriented projects which he said his government is ready to finance.
“We urge governments to create conducive policies that competitively attract Chinese investors to Africa as isolated cases of safety, health and business environment concerns in some African countries scare away potential investors,” he said.
Malawi’s peaceful environment, legal and policy reforms to improve business environment, among others should count as advantages to attract large scale value addition, labour intensive and export oriented investments from China.
The Fund further called African countries to take advantage of bilateral and multi-lateral trade agreements that offer huge export markets like the Africa Growth Opportunity Act (Agoa).