Funds work both ways for nation

China is one of the top overseas direct investment recipients and is also increasing its investments in other economies, especially in Africa, says a UN report.

The report on Asian Foreign Direct Investment in Africa, released by United Nations Conference on Trade and Development (UNCTAD) and United Nations Development Programme yesterday, shows Africa is emerging as an important destination for Chinese direct investment.

Though Africa accounted for only 3 percent of direct investment flows from China, it is increasing dramatically as the trade between China and Africa rose from $11 billion in 2000 to almost $40 billion in 2005, according to the report.