Wednesday, April 14, 2010

Chinese investments target agric, education and health sectors

Counsellor Hu Yujie of the Chinese Embassy’s Economic and Commercial Office has said that current Chinese investments in Ghana will focus strongly on the agricultural, health and education sectors.

“In recent times China has supported Ghanaian hospitals and participated in anti-malaria projects, as well as sending in agricultural experts to support the sector,” Hu said, adding that China will work to cement the healthy relationship between the two countries by encouraging future Chinese investments in the local manufacturing of equipment and machinery in those sectors.

Hu made these remarks at the signing of a memorandum of understanding (MoU) between Haige China Industries and local entrepreneur, D.K’s Unik Dezines, for Chinese investments estimated at US$300 million in 10 factories for the production of various machines and products meant for the local as well as ECOWAS and international markets.

He disclosed that as at September last year, Chinese investments in factories and other businesses in Ghana totalled over 400 - including electric power plants, furniture manufacturing, and hospitality enterprises.

“Under the China/Africa Cooperation arrangement, we will continue to be strong in investing in infrastructural development; but we will also shift into automobile manufacturing, into ICT and other hi-tech areas,” Hu said.

Unik Dezines’ CEO, Denis Anderson, disclosed that the local assembling of automobiles, tricycles, motorbikes and tractors, which is expected to begin immediately before the close of the second quarter, aims at making such items affordable to agricultural, health and education workers.

“We’re planning an arrangement with local banks, insurance companies and government departments to see how these products can be made easily available and at affordable prices to these categories of workers,” Anderson said.

He said a housing project, which is part of the investment package, is expected to be operational by the close of the year and is also targetted at making affordable housing units available to workers and the general public.

Other projects to be completed in the year include factories for salt and sugar production, paper-milling, towels and socks, as well as the assembling of Plasma/LCD televisions and air-conditioners, among others.

Haige Industries’ Chairman Peng Ye Zhen disclosed that the investments will be export-oriented with the aim of making well-known Chinese brands even more competitive for the local and international markets.

“We will be looking to satisfy the domestic market, but we will also be looking to export not only to the ECOWAS market but the international market,” said Peng.

Under the MoU, the Chinese investors hold a 70 percent stake in the venture with the Ghanaian entrepreneur controlling the remaining 30 percent stake.

Source:B&FT

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