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Chinese companies help boost recovery in Africa

By WANG XIAODONG in Nairobi, Kenya | China Daily | Updated: 2023-05-11 07:02
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Chinese supervisors help a Ugandan worker assemble a mobile phone on Dec 2, 2019, in Namanve. LUKE DRAY/GETTY IMAGES

Chinese businesspeople are flocking to Africa again with facilitated international travel which was disrupted by the pandemic, injecting new impetus to the continent's economic revival.

The number of business groups from China visiting Kenya has been increasing over the past few months, and the Kenya Chinese Chamber of Commerce alone has received 16 business groups — each comprising three to 10 enterprises — from China since the beginning of this year, exceeding the level during the corresponding period of 2019 before the pandemic, said Zhuo Wu, chairman of the chamber, based in Nairobi, capital of Kenya.

The enterprises cover different sectors, including healthcare, textiles, logistics and new energy, and many of them intend to invest and build factories in Kenya and other African countries rather than just engage in trade as before, he said.

Following the outbreak of COVID-19, business trips between the two countries fell sharply. Thanks to the optimized pandemic response measures at the start of this year, China no longer requires inbound travelers to undergo quarantine.

Zhang Jing, chairman of Anhui Rongsheng Energy Investment Co in Huainan, Anhui province, who arrived in Nairobi late last month, said this was his first trip to the East African country since the pandemic started three years ago.

"Our target this year is to start international operations, so we have conducted inspections in several African countries over the past few days for their investment environment and opportunities," he said. "Even before the trip, we did a lot of research, and the major reason why we chose Kenya as a destination is its rapid economic development compared with other African countries."

Zhang said during the trip his delegation will meet Kenyan authorities such as the investment promotion department, which has shown enthusiasm in inviting Chinese enterprises to Kenya.

Prior to arrival in Kenya, Zhang and his delegation visited Ethiopia, Tanzania and Uganda, all of which "showed enthusiasm in cooperation with us and other Chinese companies", he said.

Lyu Huabing, CEO of Zhuhai Xuzun Co in Zhuhai, Guangdong province, who also arrived in Kenya late last month, said he first arrived in Kenya in July 2019, on a business trip, and planned to visit the country again in early 2020. However, the plan had to be canceled because of the pandemic.

During his trip, Lyu visited an industrial park in Baringo County, and plans to establish a factory in the park to produce electrical pots, gas ovens and TVs, he said.

"We found such industrial products in Kenya almost entirely rely on imports, and there are no companies that produce them in the country," he said. "On the other hand, Chinese products are most competitive globally in terms of cost and technology. I think local production of such products can help reduce their prices and benefit Kenyans."

Li Juan, chairwoman of Anhui Lianfei Business Consultancy Co, in Hefei, Anhui province, which provides consultancy services for Chinese companies investing overseas, especially Africa, said the company's business started to increase rapidly since the beginning of this year, and almost every day there are companies inquiring about investing or selling products in Africa.

"The companies cover a wide range of areas ... With rich experience, advanced technology and capital, many entrepreneurs see a promising future for potential cooperation with Africa."

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