China's investment in Africa shifting towards manufacturing: WB

"Based on its own experience, China could help African countries to address structural and logistical constraints that limit the competitiveness of these exports," it said.

Manufacturing, said the WB, offers an entry point for industrialization and by attracting increased FDI, African countries could benefit from the skills development, management experience, technology transfer, and integration into global value chains.

The WB said Chinese investment in manufacturing in African countries had expanded from textiles and apparel to industries such as auto, home appliances and building materials.

With Africa seeking to boost industrialization through a number of initiatives including the long-term development framework -- Agenda 2063 -- African countries have "a unique opportunity to attract strategic, job creating investment from China, but they need to act now," the WB noted.

It said creating a conducive climate for investment from China would require putting in place a supportive policy framework; lowering transport and energy costs; eliminating formal and informal barriers to trade; increasing the flexibility of labor markets; and ensuring effective competition policies.

These policies would also help African firms to increase productivity and competitiveness, it said.

As more and more Chinese firms diversified into Africa's manufacturing, a number of African countries had started to benefit from the increased investment.

Ethiopia and Rwanda, for example, were among African countries whose manufacturing sectors had become major beneficiaries of Chinese FDI in recent years.

According to the WB, total FDI inflows in Ethiopia in 2013 accounted for 2 percent of GDP and manufacturing was the largest recipient of FDI under operation both by level of investment and by number of projects at 76 percent and 41 percent of the total respectively.

China, Turkey and India were the top three job creators in manufacturing sector both for permanent and temporary type of jobs from 2008 to 2014, reflecting the importance of manufacturing FDI from new partners, the WB said.