CCTV Transcripts

CCTV Script 04/09/18

— This is the script of CNBC's news report for China's CCTV on September 4, 2018, Tuesday. 

When it comes to the economy cooperation results and future outlook between China and Africa countries, we can see this chart that shows China's investment in Africa according to different sectors.

First, from 2005 to 2016, there was an upward trend in investment amount and program value generally; a slowdown was seen in 2014 though, buoyed then. In 2016, the amount of program that China invested in Africa increased 106%. Whatever in terms of amount, value or opportunity created, China made a new investment record in Africa.

Next, we split those investment and program into 6 sectors: transportation, property, public utility, energy, metal and technology.

If we make a comparison between 2016 and 2013, we can find the recent years trend is energy investment declining, while transportation, such as railway and high way, showing a stable increase. Additionally, share of mining and utilities rise slightly, while that of property drop.

Such data coincide with the "10 major China-Africa cooperation plans" that Chinese president Xi JinPing proposed at Johannesburg summit of China-Africa cooperation in 2015.

It said China will strengthen mutually beneficial cooperation with Africa in infrastructure planning, design, construction, operation and maintenance and support Chinese companies participating in the construction of infrastructure such as power, telecommunications, railway, highway and shipping ports, to enhance Africa's capacity for sustainable development.

So the cooperation between China and Africa is growing recent years, and infrastructure cooperation shows a deepening trend. Meanwhile, McKinsey said in a report that Chinese investment and business activities have 3 economy bonuses to Africa. One is job creation and skills development; two is the transfer of knowledge and new technologies; and three is financing and infrastructure development. And looking ahead, Africa still has huge development potential. It also predicts that by 2030 more than half of Africa's population will be living in seven countries, including Nigeria, Ethiopia, Congo, Egypt, Tanzania, Kenya and South Africa.

More than 43% of Africans is middle or higher class, and they will have an increasing demand for goods and service; Household consumption will also reach $2.5 trillion, far above the $1.1 trillion in 2015.

We can see China's investment in Africa recent years from this chart. And the investment location mirrors the Africa areas with future demographic dividend we mentioned just now, and that puts floor beneath China's future investment.

Specifically, by 2030, the most valuable industries in Africa are expected to be food and beverage, with a market value of $740 billion, education and transportation with $397 billion, and property market with $390 billion. Additionally, consumer goods, tourism, entertainment, healthcare, financial services and telecommunications will also grow strongly.

According to the research of US Brookings Institution, another major growth area in Africa by 2030 will be business-to-business spending, which will reach $4.2 trillion, up from $1.6 trillion in 2015. Agriculture and agriculture processing will have the largest scale. Currently, more than 60% unused arable land is in Africa, while agriculture exports are far from ideal. So in chemical fertilizer machinery water conservancy and irrigation system area, there are many investment opportunities, Africa has great growth potential. Also, manufacturing is the 2nd sector; Africa has potential to be the next World Manufacturing Center, those chances and potential may become the next sunrise industry that China and Africa will further deepen cooperation in.