The director of Chongqing Municipal Commission of Foreign Trade Li Jianchun said that local companies will be encouraged to target Africa as a major consumer market, following a recent fact-finding mission to the city by 16 senior ministers from nine African countries.

Chongqing’s foreign trade this year is expected to reach US$12bn, rising to US$100bn in five years. But Mr Li said that Africa currently accounts for 8.4 per cent of all exports. He expected an outward investment of US$80m in Africa in 2010, mainly in the exploration of natural resources such as iron ore.

Lifan, Chongqing’s largest privately-owned auto maker, has set up a manufacturing plant in Ethiopia with an initial output of 2,000 passenger cars. The company believes that consumer demand in Africa is set to grow rapidly. ZongShen Motors, another local manufacturer active in Africa, has been Chongqing’s top exporter for several years.