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Chinese investment 
in residential 
construction in Africa: 
The role of ABTs 
Dr. ZHOU Mi 
Chinese Academy of Internation...
Background 
• In the past year, economic situation has changed a lot, 
developing countries are facing much more challenge...
Outlines 
• China’s Outward Investment in Real Estate 
• Factors to be valued for building technology 
• China’s practices...
China’s Outward Investment in Real Estate in Africa 
0.5 3.7 
11.3 
54.0 
33.3 
23.9 
83.9 
49.5 
123.5 
57.8 
140 
120 
1...
Estimation of China’s Investment stocks 
in Africa in Real Estate 
4.1 
41.7 
170.8 
68.8 
202.9 
173.8 
343.6 
298.8 
611...
Factors to be valued for building 
technology 
TIME 
ABT 
COST 
MATU 
RITY 
COMPATI 
BILITY 
MAINT 
ANCE
China’s practices and experiences in 
ABT 
• ABTs are more and more combined to meet user’s demand. 
• Green Building: use...
Instant Building 
• Instant Building – combination of 
manufacture and construction 
• Advantage of prefabrication 
o Shor...
A WORKERS’ CAFETERIA
HONGKONG-ZHUHAI-MACAO BRIDGE
CONCRETE CASTING
CHINA-SINGAPORE TIANJIN ECOCITY(CSTE) 
• CSTE was approved by NDRC of China to be 
the first national demonstration area o...
Planning model of the city
Why is it important? 
• China has so many people together with nonsufficient 
land and quite serious environmental problem...
Challenges in Africa for Chinese 
companies to apply ABT 
• Market needs to be identified according the economic 
stage, a...
Suggestions 
• Technology is important but not everything. The benefits of 
ABT need to be acknowledged by more stakeholde...
Contacts: 
Dr. Mi Zhou 
Senior Research Fellow 
Deputy Director 
Institute of World Economy, CAITEC 
Ministry of Commerce,...
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs
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Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs

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"Chinese investment in residential construction in Africa: The role of ABTs" presentated by Dr Mi Zhou at the African Union for Housing Finance (AUHF) Conference, November 17-18, 2014 in Cape Town.

In the past year, economic situation has changed a lot, developing countries are facing much more challenges. The Sino-African relationship is getting stronger. Real estate is becoming more and more important in Chinese outward FDI, which is 3.67% of all in 2013, reaching the peak high in the past decade. As to the real estate industry, more capital has flown into the developed countries for long-term investment.

Africa needs more houses to meet different kinds of demand, based on climates, habits and income, while in most cases, land is not the first factor to consider. Chinese contractors have accumulated quite some experiences in ABT field, which would be quite helpful for the building in Africa. With rapid development, there is huge space for building in Africa, ABT should be considered if applicable.

Key message of the presentation:
• Sino-African cooperation in building has quite some space
• China has quite some experiences in ABT
• ABT should be important when considering the different factors

Dr Mi Zhou is the Deputy Director of the Institute of World Economy, CAITEC. He is a Senior Research Fellow. He has published more than 200 articles and books within his research fields on Outward Investment, Contracting and Trade in Services. He finished his post-doc research in Fudan University and visited Stanford University.

His presentation sponsored by the Africa-China Urban Initiative (http://urban-africa-china.angonet.org).

http://www.sbs.co.za/auhf2014/

Published in: Government & Nonprofit
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Dr. Zhou Mi - Chinese investment in residential construction in Africa: The role of ABTs

  1. 1. Chinese investment in residential construction in Africa: The role of ABTs Dr. ZHOU Mi Chinese Academy of International Trade and Economic Cooperation(CAITEC)
  2. 2. Background • In the past year, economic situation has changed a lot, developing countries are facing much more challenges. The Sino-African relationship is getting stronger. • Real estate is becoming more and more important in Chinese outward FDI, which is 3.67% of all in 2013, reaching the peak high in the past decade. As to the real estate industry, more capital has flown into the developed countries for long-term investment. • Africa is resource-rich and material-poor and it needs more houses to meet different kinds of demand, based on climates, habits and income, while in most cases, land is not the first factor to consider. With rapid development, there is huge space for building in Africa, ABT should be considered if applicable.
  3. 3. Outlines • China’s Outward Investment in Real Estate • Factors to be valued for building technology • China’s practices and experiences in ABT • Challenges in Africa for Chinese companies to apply ABT • Suggestions
  4. 4. China’s Outward Investment in Real Estate in Africa 0.5 3.7 11.3 54.0 33.3 23.9 83.9 49.5 123.5 57.8 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $million Estimation of China’s Investment flows to Africa in Real Estate
  5. 5. Estimation of China’s Investment stocks in Africa in Real Estate 4.1 41.7 170.8 68.8 202.9 173.8 343.6 298.8 611.4 391.4 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $million
  6. 6. Factors to be valued for building technology TIME ABT COST MATU RITY COMPATI BILITY MAINT ANCE
  7. 7. China’s practices and experiences in ABT • ABTs are more and more combined to meet user’s demand. • Green Building: use environment-friendly construction material to improve the energy efficiency and make use of different energy like Solar, Wind and Terrestrial heat, etc. • Ecological Building: create natural indoors environment with high technology, making people more comfortable in the building. Further to pursue a balance of taking from and paying back to the nature. • Intelligent Building: use modern control, communication and intelligent technology to provide people more comfortable and efficient environment in the building, which can satisfy ordinary need and deal with some emergency automatically. • And? Quicker? Bigger?
  8. 8. Instant Building • Instant Building – combination of manufacture and construction • Advantage of prefabrication o Short term of building – 30 story hotel built over 15 days(183,000 square feet) o Better quality guaranteed – all steel concrete structure, fewer bias with 90% manufactured in the factory, less supplementary building materials o Less affection to environment – no welding, no dust, no water o Lower cost – up to 30% cheaper than conventional building
  9. 9. A WORKERS’ CAFETERIA
  10. 10. HONGKONG-ZHUHAI-MACAO BRIDGE
  11. 11. CONCRETE CASTING
  12. 12. CHINA-SINGAPORE TIANJIN ECOCITY(CSTE) • CSTE was approved by NDRC of China to be the first national demonstration area on green development. It is also the first eco-city built by the cooperation between countries in the world. • Started in Sept. 2008, the area is 30 km2 to meet the living demand of 350,000. The planned building term is 10-15 years. After 6 years building, green industries have been established while public infrastructure completed and more than 20,000 people living there.
  13. 13. Planning model of the city
  14. 14. Why is it important? • China has so many people together with nonsufficient land and quite serious environmental problems. As the expansion of cities, we need to face and deal with more and more challenges. • Continuous urbanization requires more space for people living together, while the manufactures, agriculture and cities are competing with each other for more land. • This city was build on the deserted land with 1/3 from Saline, 1/3 from deserted salt farm and 1/3 from polluted water. They had quite some experiences for dealing with the polluted water, mud and which can also be used in other areas.
  15. 15. Challenges in Africa for Chinese companies to apply ABT • Market needs to be identified according the economic stage, and trend of development, and industries • ABT-related standards have not been established or more affected by western countries • Supporting infrastructure like transportation, telecommunication or even municipal facilities are not good enough for ABT • Few contractors and designers can operate ABT, not only because of few practices, but also due to the lack of supporting industries here in Africa • ABT need continuous maintenance services which are crucial and not easy for Africa
  16. 16. Suggestions • Technology is important but not everything. The benefits of ABT need to be acknowledged by more stakeholders • Standards can be formulated earlier than practice, in whose process both the western, eastern and African ways should be considered together • Planning is important for ABT, which can be cooperated discussed by host country and experienced experts • Examples need to be made for others to follow in the cities with more urgent demand, even more sustainable • More finance could support the use of ABT more • Risks or potential risks can not be ignored when apply ABTs
  17. 17. Contacts: Dr. Mi Zhou Senior Research Fellow Deputy Director Institute of World Economy, CAITEC Ministry of Commerce, PRC DATAMASTER@163.COM

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