Expert reveals why Chinese investors love doing business in Africa

A social development commentator with an interest in trade and value addition, Mr Isaac Demuyakor, PhD, has explained the three key things that attract Chinese investors to Africa. The Africa-China space enthusiast listed stable democracies, growing understanding between Africans and Chinese and Africa’s huge population as three key influential factors driving the interest of Chinese investors in Africa.

Speaking on the Africansonchina monthly panellist forum, The Conversation, Mr Demuyakor said stable democracies are among the core decisions for investors. To him, the growing levels of stability in Africa have been a point of attraction for Chinese investors in the last few years.

“You realize that more and more people [Africans] are now schooling in China and are now understanding the Chinese. For me to come to your country, I need to understand you and you need to understand me. The Chinese actually understand Africa very well because they have conducted a lot of research into Africa and they understand Africa very well. But we those in Africa, we basically don’t understand them [Chinese]…for the past 10 years, Africans have come to school in China. And they are now understanding the business strategy and ideas about China. If you understand me and I understand you it is easier for us to have a conversation. We from Africa are beginning to understand the Chinese…. That is attracting the Chinese to African startups because we understand them.”

Additionally, Mr Demuyakor said numbers play a huge game in trade and because of Africa’s large population, there is an enormous potential for Chinese investors. He said though Africa’s population is comparable to the Chinese, the number of entrepreneurs in Africa is far less that opening up more opportunities for the business-conscious Chinese to venture into the underserved African market.

Supporting the numbers game, Mr Sylvestor Demuyakor, co-founder at Africansonchina and a co-host of The Conversation said “the population” is a huge factor for Chinese investors. According to the Africa-China business services consultant, Chinese investors consider the numbers very well. “And especially the population aspect…is a huge market for them [Chinese]. That is what they look at; the numbers.” He said though the individual African countries have populations less than China when you put the countries together, they become a huge market that is attractive to the Chinese.

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