Chinese Outward FDI Stock by Sector, 2004

102
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S NEW ECONOMIC FRONTIER
FIGURE 2.27
India’s FDI Outflows by Sector and Destination
manufacturing financial services non-financial services trading other
Sudan
Mauritius
United States
United Kingdom other mm Source UNCTAD 2004a.
FIGURE 2.28
African FDI to China, Total, 2002 and 2004
0 100 200 300 400 500 600 700
Ghana
Tanzania
Burkina Faso
Kenya
Sierra Leone
Guinea-Bissau
Guinea
Cape Verde
Zimbabwe
Zambia
Namibia
Cameroon
Madagascar
Liberia
Seychelles
Benin
Other
Nigeria
South Africa
Mauritius
$ millions
2002 Source Chinese FDI Statistics Bulletin.
02-Chap2:02-Chap2 10/9/06 2:41 PM Page 102

PERFORMANCE AND PATTERNS OF AFRICAN
-
ASIAN TRADE AND INVESTMENT FLOWS
103
In summary, the growing FDI from China and India to Africa is consistent with these countries trade patterns in Africa (see box 2.6). The challenge for Africa is to grasp this opportunity to create an environment for
Asian developing economies to invest in the business activities that create high value-added commodities, rather than investing mainly in the extrac- tive sector known to create few backward linkages in the host economy.
This is the focus of chapter 6. BOX 2.6

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