This time for Africa: Chinese lured by untapped potential say it’s ‘not optimal market’, but one ‘where we could survive’
- Seeing a Southeast Asian market that is ‘effectively saturated’, some Chinese industries eye Africa to stay competitive and broaden their global reach
- But while Chinese investment in Africa is on the rise, with its low costs and few trade barriers, safety and stability concerns persist amid attacks and infrastructure shortcomings
Immediately after China reopened its borders in early January, the journeys began. Like a migrating herd of wildebeests, thousands of Chinese manufacturers set off to attend foreign exhibitions and trade fairs, keen on securing new clients while meeting old ones in person for the first time in three years.
Some made a beeline for events such as the Consumer Electronics Show (CES) in Las Vegas, but a 30-member delegation had different destinations in mind – industrial parks and trade zones in Africa.
The group departed in May from the manufacturing hub of Foshan in south China’s Guangdong province on a trip organised by local commerce authorities to help Foshan industries go global and stay competitive. The thinking was that Africa offers untapped opportunities, lower costs and fewer trade barriers than many other destinations.
Delegation member Feng Jianping has taken advantage by securing contracts to sell rechargeable fans to African families in countries across the continent.
The market explosion in Africa is yet to come
“The market explosion in Africa is yet to come,” said the exporter of small home appliances.