China main African business partner, including in infrastructure, transport and logistics

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    Capture d’écran 2017-06-28 à 18.13.20.pngA recent McKinsey report looks at the rate of growth of Chinese investment in Africa and estimates that there are currently over 10 000 Chinese firms operating in Africa, and growing.

     

    This growth is steady and solid, with 20% + profit margins.

    Mc Kinsey goes on describing tow possible scenarios: one "business  as usual" whereby Chinese revenues in Africa would reach around $250 billion in 2025, from $180 billion today. Under this scenario, the same three industries that dominate Chinese business in Africa today—manufacturing, resources, and infrastructure—would dominate in 2025 as well.

     

    Mc Kinsey, however, favors a second scenario in which Chinese firms in Africa could dramatically accelerate their growth to reach revenues of $440 billion in 2025. In this accelerated-growth scenario, not only do the three established industries of Chinese investment grow faster than the economy, but Chinese firms also make significant forays into five new sectors: agriculture, banking and insurance, housing, information communications technology and telecommunications, and transport and logistics.

    Will China be one of the main engines of growth for the African continent ? Will then African growth follow a Chinese model?

    The closest look yet at Chinese economic engagement in Africa | McKinsey & Company

    Kouamé Sylvestre KOUASSIDjané Dit Fatogoma Adou