Chinese companies have always been present in Africa; here and there we saw some booming and competing with strong African companies but in the last 2000’s Africa have definitely seen a rise in Chinese companies.
The past five to 10 years, as the Asian superpower rose, their investors branched out at a rapid speed all over the globe. Their economy puts them at a fair place to invest and expand their businesses outside of Asia. The construction sector saw a massive increase in Chinese construction companies and architects coming with a new style that can benefit African emerging cities.
Infrastructure, mining industry and manufacturing are mostly where Chinese companies are focused, besides construction of course. Chinese companies are vast and have an upper hand when it comes to their pricing which is usually fair as compared to other international companies in Africa.
Speaking to a staff member at the Department of Trade and Industry, he mentioned that foreign investments will never be declined in South Africa; however they need to comply with our rules and regulations.
“There have been foreign companies, particularly Chinese, that come and open businesses in Africa and promise to increase employment statistics yet when you go to their companies, majority of their staff are Chinese nationals,” said the official addressing some of the issues they face with foreign companies.
China and South Africa signed deals up to $90billion dollars at the Forum of China-Africa Cooperation in Johannesburg in December 2015. The investment will boost the economy, manufacturing, infrastructure and agricultural sectors among others. The deals will also look closely at employing more South Africans to decrease the unemployment rate which is at the core of development in Africa as a whole.
In an interview with Beijing Automotive Works CEO, he spoke about how necessary it is to change your mind set when living in another country and adhere to their labour laws in order to grow your business. Their staff members have less than 10 Chinese nationals.