China 'wants to set up factories in Africa'

The Chinese government has shown "strong interest" in setting up factories in Africa, helping the continent develop a manufacturing base and boost its economy, the president of the World Bank said today.

While most attention on China's investment in Africa has focused on its large-scale pursuit of natural resources, experts say a growing number of the country's entrepreneurs are experimenting with production there.

However, some questioned whether the workshop of the world was ready to outsource much of its industry.

"There is not only willingness but strong interest among some in China, and I've discussed with the minister of commerce, Chen Deming, that there may be possibilities of moving some of the lower-value manufacturing facilities to sub-Saharan Africa, toys or footwear," Robert Zoellick, the president of the World Bank, told the Financial Times.

He suggested Chinese knowhow in production and marketing could boost Africa's declining share of international trade, but admitted infrastructure improvements were needed to attract companies.

It is thought the scheme might involve creating industrial parks -- possibly part-funded by the World Bank and China -- so companies could settle in quickly and operate more effectively.

The institution sees manufacturing as a missing element in the continent's development.

China is keen that its presence in Africa should be seen as more than a resources grab

RPT-FEATURE-China marches on in Africa despite downturn

By Alistair Thomson

DAKAR, Jan 28 (Reuters) - Chinese businessmen are taking a long-term view and pursuing strategic expansion in Africa even though China's multiplying investments on the continent have lost some lustre in the global downturn.

Beijing and Chinese companies have pledged tens of billions of dollars to Africa in loans and investments mostly to secure raw materials for the world's fastest-growing large economy.

That long-term interest remains intact, despite a worldwide economic slump that has hit China's exports to the rich world and a sharp decline in Africa's mineral shipments to China.

China-Africa trade has surged by an average 30 percent a year this decade, soaring to nearly $107 billion in 2008.