The current revenue worth $180 billion earned by Chinese firms in Africa could increase to $440 billion dollars by 2025, a report says.
The latest report on Africa-China economic partnership by McKinsey & Company, a global management firm, found that there were more than 10,000 Chinese firms operating in Africa.
This was found out following a study conducted across eight countries that, together, make up about two-thirds of Sub-Saharan Africa’s GDP.
According to the report, 90 per cent of the privately owned firms were operating in different sectors, while one-third of the companies were in manufacturing.
The study also found that a quarter of the firms were in the service sector and a fifth in trade, construction and real estate.
It further showed that Chinese firms already handled 12 per cent of Africa’s industrial production valued at 500 billion a year in total.
“These firms are bringing capital investment, management know-how and entrepreneurial energy to the continent, and in so doing, are helping to accelerate the progress of Africa’s economies.”
“By value, only 47 per cent of Chinese firms’ sourcing was from local African firms, which is lost opportunity for these firms to benefit from Chinese investment.
“Too few locals are in managerial positions—only 44 per cent today.”
Kartik Jayaram, a senior partner and co-author of the report said that Chinese engagement with Africa was “set to accelerate”.
“By 2025 Chinese firms could be earning revenues worth 440 billion dollars, from 180 billion dollars today.
firms in Africa would accelerate sustainable investment. (NAN)
