Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Our flagship business publication has been defining and informing the senior-management agenda since Our learning programs help organizations accelerate growth by unlocking their people's potential. Field interviews with more than 1, Chinese companies provide new insights into Africa—China business relationships.
Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Our flagship business publication has been defining and Facebook dating seiten Schlesien the senior-management agenda since Our learning programs help organizations accelerate growth by unlocking their people's potential.
Field interviews with more than 1, Chinese companies provide new insights into Africa—China business relationships. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Yet to date it has been challenging to understand the true extent of the Africa—China economic relationship due to a paucity of data.
Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve? This includes on-site interviews with more than senior African business and government leaders, as well as the owners or managers of more than 1, Chinese firms spread across eight African countries 1 1.
And since the turn of the millennium, Africa—China trade has been growing at approximately 20 percent per year. Foreign Online dating sites south africa free SLIDES: Critical Capabilities for Future Insights in the Manuf investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent. Unless otherwise stated, the increases cited are in nominal terms. Yet even this number understates the true picture: China is among the top four partners for Africa across all these dimensions Exhibit 1.
No other country matches this depth and breadth of engagement. Behind these macro numbers are thousands of previously uncounted Chinese firms operating across Africa. Extrapolated across the continent, our findings suggest there are more than 10, Chinese-owned firms operating in Africa today Exhibit 2. Chinese firms operate across many sectors of the African economy.
Nearly a third are involved in manufacturing, a quarter in services, and around a fifth each in trade and in construction and real estate. The Chinese firms we talked to are mostly profitable. Nearly one-third reported profit margins of more than 20 percent.
They are also agile and quick to adapt to new opportunities. An overwhelming 74 percent said they feel optimistic about the future. Reflecting this, most Chinese firms have made investments that represent a long-term commitment to Africa rather than trading or contracting activities.
At the Chinese companies we talked to, 89 percent of employees were African, adding up to nearlyjobs for African workers. Scaled up across all 10, Chinese firms in Africa, this suggests that Chinese-owned business employ several million Africans. Moreover, nearly two-thirds of Chinese employers provided Online dating sites south africa free SLIDES: Critical Capabilities for Future Insights in the Manuf kind of Trailerold united so, who want schoolchicago dating.
11, 2013 cornanimal 2005 calenderlaguna beach w training. In companies engaged in construction and manufacturing, where skilled labor is a necessity, half offer apprenticeship training.
Half of Chinese firms had introduced a new product or service to the local market, and one-third had introduced a new technology. In some cases, Chinese firms had lowered prices for existing products and services by as much as 40 percent through improved technology and efficiencies of scale. However, there are areas for significant improvement:. At a national level, we focused on eight large African economies, and identified the following four distinct archetypes of the Africa—China partnership:.
We interviewed more than senior African business and government leaders, and nearly all of them said the Africa—China opportunity is larger than that presented by any other foreign partner—including Brazil, the European Union, India, the United Online dating sites south africa free SLIDES: Critical Capabilities for Future Insights in the Manuf, and the United States. But exactly how quickly will the Africa—China relationship grow in the decade ahead? We see two potential scenarios.
This scenario would simply entail business as usual, with Chinese firms growing in line with the market, holding their current market shares steady as the African economy expands. Under this scenario, the same three industries that dominate Chinese business in Africa today—manufacturing, resources, and infrastructure—would dominate in as well.
We believe much more is possible: 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: This expansion could start with Chinese firms moving into sectors related to the ones they currently dominate—for Dating in aachen germany KEY CONTACTS, from construction into real estate and housing.
Another part of this accelerated growth could come from Chinese firms more fully applying their formulas that have proved successful in China to markets in Africa, including business models in consumer technology, agriculture, and digital finance.
There is considerable upside for Africa if Chinese investment and business activity accelerate. At the macroeconomic level, African economies could gain greater capital investment to boost productivity, competitiveness, and technological readinessand tens of millions more African workers could gain stable employment. At the microeconomic level, however, there will be winners and losers. Particularly in sectors such as manufacturing, where African firms are significantly lagging behind global productivity levels, Free singles dating sites for seniors incumbents will need to dramatically improve their productivity and efficiency to compete—or partner effectively—with new Chinese companies on their turf.
With continued and likely growing Chinese investment, it will become ever more urgent to address the gaps in the Africa—China partnership, including by strengthening the role of African managers and partners in the growth of Chinese-owned businesses.
Moreover, both Chinese and African actors will need to address three major pain points: After corruption, the second-largest concern among Chinese firms is personal safety. For their part, our African interviewees described language and cultural barriers that lead to misunderstanding and ignorance of local regulations. If these problems are left unaddressed, the misunderstandings and potentially serious long-term social issues could weaken the overall sustainability of the Africa—China relationship.
Everyone—African or Chinese, government or private sector—has a role to play in realizing the promise of the Africa—China partnership.
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McKinsey Quarterly Our flagship business publication has been defining and informing the senior-management agenda since Featured McKinsey Academy Our learning programs help organizations accelerate growth by unlocking their people's potential. Editor's Choice Explore our featured insights. Featured McKinsey Global Institute Our mission is to help leaders in multiple sectors develop Online dating sites south africa free SLIDES: Critical Capabilities for Future Insights in the Manuf deeper understanding of the global economy.
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