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African mining may get China trade surplus Posted: Wed, 12 Sep 2007 [miningmx.com] -- THE government of China could increase its investments in African mining and related companies, according to South African economist Dawie Roodt of Efficient Group. “I suspect Africa is going to get much of the $250bn [projected trade deficit] from China,” he said. China’s government said on September 11 that its trade balance for August was a surplus of $24.97bn, a level that was expected to vault to $250bn in the future. “China is running on a huge current account because they are exporting more than they are importing and this has resulted in the country accumulating huge amounts of dollars,” said Roodt. “China has so far used these dollars buying equities in the US but they have now formulated an investment arm known as the Chinese Investment Company, which is currently looking at investing somewhere else in the world and possibly in South Africa and the rest of the African continent,” he said. Commodity producing states such as Nigeria, South Africa and Zimbabwe were most likely to be at the top of China’s shopping list. “It would be very interesting to see where their target will be but I’ve got suspicions that Africa is going to get much of that $250bn,” Roodt told listeners of Classic Business, a week-nightly radio broadcast on Classic FM. “Countries with oil, energy producing countries like Nigeria and hopefully countries like South Africa with platinum and maybe even Zimbabwe that really need that sort of investment could benefit," he said. Click Here to subscribe to our daily newsletter
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