China among top job creators in Africa

(DAILY NATION)

 

As per an expert, China has become one of the top job creators in Africa, as it created close to 30,000 jobs in Africa  over the last two years. China ranks the 7th in terms of project numbers in Africa, but it created the most jobs.

 

Most jobs come from China’s Greenfield investment by private sector.  Job creation can be attributed to China’s investment strategy as well as its willingness to hire local people. Chinese investment in Africa is mainly in labour-intensive industry and most African countries see employment as their top priority, which Chinese companies are willing to cooperate.

 

China is ranked as the fifth job creator between 2003 and 2015 through her foreign direct investment in Kenya.

 

HIRING KENYANS

 

Contrary to the popular belief that Chinese companies only hire Chinese workers, 93 percent of companies report hiring Kenyan employees. Between 2003 and 2015, FDI from China created 166.92 jobs on average per project.

 

This was compared to 100 jobs generated per project by total FDI in Kenya, according to the paper. 60 per cent of Chinese companies also offered formal training programmes on skills, safety, and hygiene for local staff, compared to 64 per cent on the part of all foreign firms in Kenya which offered such training.

 

Despite the sluggish global economy and trade growth, industrial cooperation between China and Africa has been gaining momentum as more Chinese companies invest in Africa.

 

INFRASTRUCTURE PROJECTS

 

During 2015 and 2016, a multitude of cooperative infrastructure projects, economic zones and industrial parks in Africa were commenced or put into operation.  China announced that it would roll out 10 major plans to boost cooperation with Africa in the coming three years, in areas including industrialization, agricultural modernization, infrastructure and financial services, among others.

 

To ensure smooth implementation of the initiatives, China also announced 60 billion US dollars of funding support in the forms of preferential loans, export credit on more favorable terms, interest-free loans and free aid.

 

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