Private companies are increasingly driving Chinese investments in Africa, drawn by the continent’s abundant natural resources and growth opportunities in various sectors, Cheryl Buss, head of the international operations of a pan-African banking group, told Caixin in a recent interview.

“In the past, we’ve seen — as per the Chinese strategy and the Belt and Road Initiative — a lot of growth (in investment) and development (in Africa) was around (Chinese) state-owned entities,” said Buss, CEO of Absa International. “They led the charge, and they were largely supported by the Chinese government.”

But over the past five years, Chinese private firms have been increasingly investing in Africa on their own with encouragement from the Chinese government, she said, highlighting investors such as telecoms giant Huawei Technologies Co. Ltd., and ceramic machinery provider Keda Industrial Group Co. Ltd. (600499.SH +0.17%).

In 2018, Huawei set up a data center in South Africa to provide cloud services. Last year, it announced a plan to invest $430 million in northern Africa for, among other things, establishing a cloud center and training local digital talent over a five-year period.

Government encouragement and support are not the only reason for Chinese companies to invest in Africa, as the continent offers attractive growth opportunities, Buss said, citing African countries’ rising demand for infrastructure and growing urban and middle-class populations.

China is Africa’s fourth-largest source of investment, and has invested in 52 countries on the continent, according to a 2023 report published by the China-Africa Business Council (CABC), an international chamber of commerce.

Chinese companies are major investors in infrastructure in Africa, the CABC report pointed out, highlighting key projects contracted by Chinese companies, including the Mombasa-Nairobi Standard Gauge Railway and Mombasa Port, both of which are under the Belt and Road Initiative.

Beijing first announced the initiative in 2013, calling on broad participation to develop infrastructure along the land-based ancient Silk Road and a maritime route connecting China and Europe. The program now involves more than 100 countries in multiple regions, including Africa.

From 2013 to 2022, China’s direct investment in Africa totaled $35 billion, double the previous decade, data from the country’s Ministry of Commerce showed.

Popular sectors for investment include manufacturing, telecommunications, mining, energy and agriculture, Buss said. Africa offers abundant critical natural resources, which Chinese companies have been increasingly interested in, according to the Absa International executive.

Absa International is part of Absa Group Ltd., a Johannesburg-listed financial services provider operating banks in 10 African countries, including Botswana, Ghana, Kenya and Zambia. The group, which had a market cap of more than $7 billion as of Thursday, also has offices in the U.K. and the U.S.

Earlier this year, the group announced that it had opened an office in Beijing to support Chinese clients doing business in Africa.