Entrepreneurs from China Flourish in Africa

 

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In the past five years or so, hundreds of thousands of Chinese have moved to Africa in search for a better life. But instead of migrating to “traditional” destinations such as Europe or the US, more and more Chinese have been setting their sights on Africa.

For example, Mr. Yang left China in 2001 and moved to Lilongwe, Malawi to start up an ice cream factory where he thought his product would be in much higher demand. His ice cream company is now the country’s biggest. Compared to when he first moved to Malawi, Mr. Yang said an increasingly large number of Chinese migrants has taken root, running everything from small factories to health clinics to restaurants and massage parlors. The Xinhua News Agency recently estimated that in 2006 economic ties between China and Africa had reached $55 billion, as compared to under $10 million just a generation before. 

This flux of Chinese interest in Africa has been driven mostly by word of mouth. Chinese immigrants relay home their success in places where “many economies lie undeveloped or in ruins.”  While such economic conditions may deter Western investors, small-scale Chinese investors view them accessible.

Not only do small-scale entrepreneurs have a new-found interest in Africa, but big Chinese companies have become interested too, especially in large-scale public works contracts. China Road and Bridge Construction has 29 projects in Africa and maintains offices in 22 African countries. 

As for the local reaction to this, many Africans worry about what Chinese competition will mean for local traders and business owners competing for already scarce resources.  “This massive arrival could be a plus for the economy, but we are also worried,” said Renaud Dingeumnaial, director of Chad’s Chamber of Commerce. ”When they arrive, will they bring their own workers, stay in their own houses, send all their money home?”

While anti-Chinese sentiment has intensified in a few regions of the continent, it has produce few serious incidences in general. 

Click here to read the full NYTarticle.

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