Chinese investments and interest in African nations have been noticed all over the world. However, infrastructure projects apart, many private enterprises set up by the Chinese in countries of Africa, are in the intermediary stages. The stage of transition is the initial entry of an enterprise in a foreign country when companies set up trading activities. They use this time to explore the business potential as well as possibilities of setting up manufacturing units and understand the local market.

A typical case in point is the Wenzhou Hazan Shoe Company in Nigeria. It entered Nigeria in 2004 to build factories where half finished goods from china, were assembled. However, by 2007, the Shoe Company had invested US$13 million in Nigeria. Today it is the largest manufacturer of shoes in the whole of Africa having a huge space of 40,000 meter square for production unit. The worldwide economic slowdown has affected Chinese exports to Europe and America, but exports to Africa continue at the same levels.

Interest in Africa has encouraged many private entrepreneurs to visit Africa to gain first hand experience about the country and its market. The majority of Chinese private investment is in processing industries and trade in fields of consumable goods, food, pharmaceutical goods, light manufactured goods, electrical equipment and building material.

The Republic of Congo and China celebrated the 45th anniversary of the establishment of diplomatic ties between the two countries. The government of Congo expressed gratitude for the support it had received from China. The African countries known more for the abject poverty suffered by their masses have benefited tremendously from Chinese investments in infrastructure facilities.

Sino-African ties in trade and commerce have been along the lines of the Five Principles of Peaceful Coexistence. That both countries have benefited mutually, is evident from their ability to cope up with the financial crisis affecting most countries. The trade between these two countries has crossed the $100 billion mark two years before the bilateral target for trade. The Chinese business policy has been termed by many as a willing-buyer, willing-seller one. China does business with a profit motive and what it gets from Africa in terms of oil, natural resources etc helps prop up its own developmental plans. Its workforce gets employment opportunities and its industries can sell what they produce.

China has interests in Africa’s resources and mining potential. To read too much beyond this into Chinese intentions is a bit unfair on a simple business strategy.

Source : Manufacturers Producers Chinafrica