25% Chinese companies in Africa make investment back within a year

Africa’s largest economic partner, China, has challenge to understand the full extent of its partnership due to dearth of data.

A new report by McKinsey Africa finds that its involvement is bigger and more multifaceted than previous studies suggest.

Through a study conducted across eight countries that together make up about two-thirds of sub-Saharan Africa’s GDP, the report finds that there are already over 10,000 Chinese firms operating in Africa – four times the previous estimate.

About 90% of these are private firms, of all sizes and operating in diverse sectors, with about a third in manufacturing.

Across trade, investment, infrastructure, financing and aid, China is a top-five partner to Africa – no other country matches this level of engagement.

The China-Africa relationship has high up over the past decade with trade growing at around 20% per annum, while FDI has grown even faster, at an annual growth rate of 40%.

UCJ, UNILORIN.