Chinese investment in Zambia is expected to more than double to $2,4 billion in 2011, driven mainly by investments in mining and manufacturing, the southern African nation’s trade minister said on Thursday.
“By the end of this year, Chinese investment in Zambia should be able to reach $2,4 billion,” Felix Mutati said in a statement.
The investment would equal about 20% of Zambia’s economy, according to the World Bank data.
Chinese direct investment exceeded $1 billion in 2010 and created more than 15 000 jobs, Zambia’s vice-president said this month.
Mutati said Zambia, Africa’s top copper producer, expected to attract major Chinese investment in special tax-free zones created to encourage value addition to raw copper.
China has invested billions of dollars into African states such as Zambia, hoping to secure the resources it needs to fuel its booming economy.
The recent signing of an agreement with China’s privately owned Zhougui Mining Group would attract more than $5 billion into Zambia’s mining sector over the next few years.
Mutati said Chinese investment into Zambia had swelled by more than 400% since 2004, the highest growth in investment by any foreign country.