The Upcoming Win-Win Situation in Africa for Chinese Enterprises

"we would love to invite the investment of Chinese enterprises, because of the efficient office work that you can register a company within 24 hours and the good social security and the business opportunities in the areas of mining, energy and the construction of airport and highway."

It was said by Enga Lambe, the Rwanda ambassador in China, at the Economy and Trade Cooperation Forum of China-East Africa Community in the Seventeenth China International Invest and Trade Fair held on September 9, to warmly welcome the Chinese enterprises to his country.

The Chinese Company“going out to Africa"is one of the key word at this Fair. There is a Sino-Africa Cooperation pavilion established for on-site communication and project discussion between Chinese company and Africa government officials as well as people in charge of the Association.

“We have digged out the first bucket of gold in Africa" said by Xue Qingmiao the Assistant Manager in Fujian Jinjiang Sanli Engine Co. Ltd to the reporter.

Ms. Xue continued his talk that when the company was established in 2000 and specialized at the motorcycle, the competition in the Chinese market was fiercely cruel without any profit to earn to our advantage. So in 2002 the company investigated the Togo market and drew the conclusion that there were potential business opportunities in Togo. Because of the poor conditions of local road, the motorcycle was the main transporting vehicle and the second-hand motorcycle from Japan and Korean was so popular that a Honda second-hand Motorcycle can sell 20,000 RMB.

Therefore, the company might get the profit by producing the quality motorcycle and selling 10000 RMB to the local buyers. In 2003, established the trade company in Togo, Fujian Jinjiang Sanli Engine Co. Ltd began entering the Africa Market to sell SanLi motocycle in Togo and the neighboring countries with the annual sale up to 6 millions USD.

Ms. Xue said to the reporter: “in recent years, the sale volume of our company in Africa is around 40 millions which is due to the largest demand of Africa Market and the“brand management" Strategy excised in Africa by our company."

According to the introduction, there are franchised stores of Fujian Jinjiang Sanli Engine Co. Ltd set up in Togo, Cameroon, Nigeria and other countries; the local media to broadcast the San Li products and the professional service mechanic to maintain San Li. All of these measures have increased the brand loyalty of the Africa customers.

At the end of August this year, according to a white paper on "China-Africa Economic and Trade Cooperation" issued by the Information Office of the State Council, China has become Africa's largest trade partner, and Africa is now China's major import source, second largest overseas construction project contract market and fourth largest investment destination. In 2012, the total Sino-Africa trade volume reached up to 198.49 billions USD.

The general manager of Africa investment department of the China Africa Development Fund, Wu Guohua said: “founded in November, 2006, the China Africa Development Fund had invested 60 projects in around 30 Africa countries and contributed to attract10 billions USD investment from Chinese company"

Fujian Sansd Rubber&Plastic Co.,Ltd set off to exploit the South Africa market from 1988. The general manager speaks to the reporter: “our company’s main business is to export sport shoes, children toys and jeans which are good quality and covering hundreds of different designs. A pair of 20 USD sport shoes can wear around 3 years that is very welcome among South Africa buyers"

Star Times is a private enterprise. In 2011, Star Times and China and Africa Development Fund jointly invested the construction of wireless digital TV network on the ground. Mr. Wu said: “ this project have offered 2500 jobs and digital TV and communication network for 2.4 million household"

Mr. Wu introduced that another project, Malawi, Mozambique (19705, 50.00, 0.25%)cotton grow project , invested by China and Africa Development Fund created 110000 job opportunities for the local peasant.

The secretary of East Africa community Richard Siesbela said: “ Africa is the fastest growth area in the world enjoying the huge business opportunities in terms of energy exploitation,infrastructure construction and tourism development. Meanwhile, the “going out" of Chinese enterprises have brought us the advanced experience and technology as well as the growth of employment. Therefore, we welcome and protect the investment of Chinese enterprises in Africa.

The sports shoes annual sales of Fu Jian PuTian AILIA Group in Africa is over 500,00. Pan Dexin told the reporter: “in the large Africa market, Chinese enterprises especially the manufacture company are welcomed in the local by their good quality and cheap products".

Zhang Liwei, the deputy director of West Asia and Africa Division of the Ministry of Commerce of China, said: “ recent years, Chinese light industry and manufacture industry have accelerated to transfer to overseas. In along with the further open up of the Africa market and the broad prospection of Africa market, Chinese enterprises will face more opportunities."