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Seven Chinese Companies That Have Made It In Africa by Nobody: 10:07am On Aug 11, 2017 |
China’s growing commercial involvement in Africa has been well documented. However, a new study by McKinsey & Company, titled Dance of the lions and dragons, suggests the number of Chinese businesses in Africa are much greater than previously thought. It estimates there are more than 10,000 Chinese-owned firms in the continent today. Africa-based Chinese enterprises are making respectable profits. Nearly a quarter recovered their initial investment within 12 months, while 50% reported it took them three years or less. One of the reasons for their success is that Chinese entrepreneurs are prepared to act boldly and swiftly – often at considerable personal risk – to build their businesses. How we made it in Africa takes a closer look at a few Chinese companies successfully operating on the continent. Tecno: Products tailored for Africa McKinsey estimates about 90% of Chinese companies in Africa are privately-owned. These firms work towards their own profit motives, challenging the belief that most Chinese investment in Africa is coordinated through the state. One such private venture is mobile phone brand Tecno, owned by China-based Transsion Holdings, which has achieved market share of as high as 40% in some East African countries, despite the presence of global competitors. Tecno’s devices are generally affordably-priced, and has features specifically tailored for the African countries where it operates. For instance, it was the first major brand to introduce a keyboard in Amharic (Ethiopia’s official language) and its devices include photo software to batter capture darker skin tones. Twyford: State-of-the-art factory run by locals About two hours from Kenya’s capital Nairobi, in a mostly-rural area, stands the Twyford ceramic tile factory, constructed in just eight months in 2015-16. It took the McKinsey team some time to arrange a visit to the Twyford factory, as the managers, like many other Chinese businesspeople in Africa, prefer to keep a low profile. The facility is a joint venture between two Chinese firms: Sunda Group and Keda Clean Energy Company. Sunda started out by importing tiles from China into Nigeria, but has since launched its own manufacturing operations in a number of African countries; its partner, Keda, is a Shanghai-based supplier of industrial machinery. The majority of this modern factory’s workers, including management, are Kenyan, debunking the myth that Chinese companies don’t employ locals. In fact, 89% of employees at the more than 1,000 companies McKinsey talked to, were African. It is estimated that Chinese-owned businesses already provide work for millions of Africans. Huawei: Transferring technology Telecommunications company Huawei is an example of a Chinese operator whose technology has enabled African companies to boost their service levels. In 2015, Kenyan mobile operator Safaricom migrated 12.8 million of its M-Pesa mobile money subscribers to Huawei’s platform. The benefits of the new system included faster transaction processing, an open application program interface (API) for third-party integration, and improved security measures. According to McKinsey’s research, Chinese companies are involved in substantial transfer of technology in Africa – nearly 50% have introduced a new product or service, and over a third have brought in new technology. Sunshine Group: Multisectoral player Sunshine Group is an example of a Chinese company which started out in one industry, and expanded into others. Founded in Tanzania in 2012, it initially focused on mining, but has since entered sectors including agriculture, manufacturing and transport. The company has invested around US$100m in projects such as a gold-smelting facility, agri-processing plants, and a card-printing facility that produces bank and phone cards. StarTimes: Making pay-television accessible Broadcasting company StarTimes has grown into one of the continent’s top pay-television providers, with about 10 million subscribers and established subsidiaries in more than 30 African countries. It has taken a long-term view by investing in low-cost, digital satellite television. For instance, in Tanzania, StarTimes has lowered the local price of pay-television by up to 90%. And in Kenya, the company has introduced digital satellite television to rural parts of the country that previously had limited access to a television signal. Bobu Africa: Catering for Chinese tourists Not all Chinese companies in Africa are large industrial enterprises. Travel agency Bobu Africa was launched by a young Chinese couple to introduce authentic African culture to Chinese tourists, who are showing increasing interest to visit the continent. The founders developed an array of interesting travel routes, including visits to craft workshops, enabling local artisans to boost their incomes. FAW: Manufacturing for the domestic market McKinsey’s research found that Chinese factories in Africa are predominantly serving the domestic market, with 93% of the revenues of the manufacturers it interviewed originating from local or regional sales. An example of a large business targeting domestic buyers is truck manufacturer FAW. It has invested $50m in an assembly plant in South Africa, which produces about 5,000 vehicles annually for both the South African market and other African countries. In 2013, FAW also partnered with Perfection Motors to assemble and market its trucks in Nigeria. SOURCE: https://brandspurng.com/seven-chinese-companies-that-have-made-it-in-africa/ 4 Likes 1 Share
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Re: Seven Chinese Companies That Have Made It In Africa by sHOTdownHawk: 12:48pm On Aug 11, 2017 |
Do any of this companies manufacture in Nigeria? Cause its seems they import to Nigeria alot. Makes me think china is dissing Nigeria low key! 11 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by rodeo0070(m): 5:59pm On Aug 12, 2017 |
This is awesome |
Re: Seven Chinese Companies That Have Made It In Africa by froz(m): 7:07am On Aug 14, 2017 |
Closed economy for 10 yrs and now here they are. |
Re: Seven Chinese Companies That Have Made It In Africa by austin2all: 7:40am On Aug 14, 2017 |
WHEN IS OUR PICTURE RETURNING FROM LONDON 8 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by ybalogs(m): 7:40am On Aug 14, 2017 |
Tecno just had to be number 1 sha. Can't see them loosing that position anytime soon. |
Re: Seven Chinese Companies That Have Made It In Africa by Ajewealth123(m): 7:41am On Aug 14, 2017 |
Viju milk should be no 1 on this list 1 Like 1 Share |
Re: Seven Chinese Companies That Have Made It In Africa by Nobody: 7:42am On Aug 14, 2017 |
What about CCECC (China Civil Engineering Construction Company)? 18 Likes 1 Share |
Re: Seven Chinese Companies That Have Made It In Africa by Bawsse(m): 7:42am On Aug 14, 2017 |
More like seven Chinese companies that has exploited the dumb Africans with substandard goods.... Waiting for the day when I'll see Nigerian companies making it in other parts of the world, now I'm not talking our already established drug and yahoo mega companies 9 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by ybalogs(m): 7:42am On Aug 14, 2017 |
froz:We have a lot to learn from these guys but we just wouldn't. Imagine them coming over to boss us around. More than annoying. 3 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by idrisolaide(m): 7:43am On Aug 14, 2017 |
ok
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Re: Seven Chinese Companies That Have Made It In Africa by oneda(m): 7:43am On Aug 14, 2017 |
austin2all: When the phone for taking the selfies run out of battery 4 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by LastSurvivor11: 7:44am On Aug 14, 2017 |
Made it in Africa or has exploited Africa with the help of our fellow Africans Anyway they dey try shaa.. 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by solidman59(m): 7:45am On Aug 14, 2017 |
elkol: Mtcheeew!!! Those slave drivers will never make it anywhere |
Re: Seven Chinese Companies That Have Made It In Africa by 247Dior(m): 7:46am On Aug 14, 2017 |
sHOTdownHawk:Does Nigeria have enabling environment ? 1 Like 1 Share |
Re: Seven Chinese Companies That Have Made It In Africa by okwyee(m): 7:46am On Aug 14, 2017 |
At least some people are making life easier for us while making their own profits, not like some edioots that prefer to waste our money anyhow they want. Good job China 2 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by mjbaba: 7:47am On Aug 14, 2017 |
B |
Re: Seven Chinese Companies That Have Made It In Africa by NwaAmaikpe: 7:47am On Aug 14, 2017 |
Re: Seven Chinese Companies That Have Made It In Africa by CzarChris(m): 7:48am On Aug 14, 2017 |
The chinkos You've got to love their business savvy nature. Personally, I just don't like tecno phones, but they actually made smart phones available to one and all in a market traditional dominated by high end phone manufacturers like Samsung and iPhone. Never knew Huawei was a Chinese company thought it was Korean. That's nice to know. 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by HAH: 7:48am On Aug 14, 2017 |
Funny enough tecno is not a known brand in china. The Chinese make them for mainly Africa and India 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by sukkot: 7:51am On Aug 14, 2017 |
they deserve it. they are dragging africa out of the dark ages 3 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by Noblefreeman(m): 7:51am On Aug 14, 2017 |
you didn't add infinix,Samsung,and president Buhari 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by IkpuMmadu: 7:52am On Aug 14, 2017 |
If we had a great government..they would be encouraging firms to take over African space by giving them good loans with little interest But no .they are busy buying cars 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by Sanchez01: 7:52am On Aug 14, 2017 |
A list of successful Chinese companies in Africa without Lifemate is incomplete. 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by DjAndroid: 7:59am On Aug 14, 2017 |
sHOTdownHawk:Nigeria does not have a friendly business environment. Electricity one of the major issues with business in Nigeria especially manufacturing 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by EmekaBlue(m): 8:02am On Aug 14, 2017 |
我可以说中文,但是中国公司不要给我工作。我不开心 我在尼日利亚 2 Likes |
Re: Seven Chinese Companies That Have Made It In Africa by PehaKaso: 8:02am On Aug 14, 2017 |
Re: Seven Chinese Companies That Have Made It In Africa by VivaLaFrans: 8:04am On Aug 14, 2017 |
IkpuMmadu:We are just waiting for the day solar and electricity will take over oil, by then we will truly know a fast thinking leader.... That is when the real managerial work begins for a leader.... Now everyone is claiming to be a smart because oil is still selling... 1 Like |
Re: Seven Chinese Companies That Have Made It In Africa by eluquenson(m): 8:07am On Aug 14, 2017 |
They really ruled the market |
Re: Seven Chinese Companies That Have Made It In Africa by kaymical(m): 8:12am On Aug 14, 2017 |
EmekaBlue:meaning? |
Re: Seven Chinese Companies That Have Made It In Africa by Nobody: 8:19am On Aug 14, 2017 |
Bawsse:Badt guy |
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