That Africa is poor isn’t exactly news. But, that may be changing soon. With help from China, the continent is evolving and may soon be known as the ‘Next Factory of the World’.
China evolved and became one of the biggest economies in the world because of industrialization. And there is no doubt that Africa can do the same. But just like in the movies, the well-known country did not start the industrialization stage on a good note.
Africa is one of those places that is underdeveloped in almost every way, which is why China sees an opportunity to develop and shape African nations. Of course it may well be profitable and gives the Chinese access to the continent’s resources. With the help of entrepreneurs from China, Africa now gets the chance to industrialize and take its economy on a higher playing field.
People are attracted to delve into different business ventures in Africa because of two reasons:
- Low labor cost
- Less competition
China is a refined country that always put a thinking cap on when it comes to the do’s and don’ts of profit-making. That is why their business-minded perspective could create a bold solution to the industrialization of Africa.
Factories That Are Making a Difference
The common motivator for both China and Africa are the establishment of factories that create real jobs and can improve the status of an economy. Following are just some of the Chinese-owned companies that have factories in Africa.
FAW is a Chinese truck manufacturing company that established factories in Africa and mostly cater the domestic market and other African countries. The company invested $50M in a factory that is located in South Africa.
It was reported that the factory develops about 5,000 vehicles yearly. FAW also joined a well-known car company, Perfection Motors to build and market its trucks in Nigeria.
Sunshine Group is a Chinese company that is located in Tanzania. The company started as a mining firm in 2012 until it ventured into other industries such as transport, manufacturing, and agriculture.
The Tanzania-based company invested around $100M for projects including a card-printing facility that develops phone and bank cards and gold-smelting facility.
Twyford is a ceramic tile factory that is located in a rural area near Nairobi, the capital of Kenya. The company is Chinese-owned that was established in 2015.
The factory was said to be a joint venture between two companies: Keda Clean Energy Company and Sunda Group. Twyford is showcasing African management because its workers are Kenyan, which trumps the issue about Chinese firms not employing locals.
Are Factories Important?
Educating people in Africa is a development program that comes from both the UK and the United States of America. Despite the implementation of this practice, it doesn’t guarantee the creation of 100 million jobs nor the salvation of billions of African people from poverty.
Africa needs something new in order to cope up with other continents and the establishment of Chinese factories is one good method.
Experts believed that factories can reorganize an entire economy, turning it into a new and lasting level of wealth. The manufacturing market will never go out of style as it always engages mass labor that is very productive. And as of this moment, Africa caters to more than 15,000 Chinese firms that are involved in manufacturing.
It was hard for many Chinese factories to survive on their own turf for the past 15 years. The rising costs in China pushed entrepreneurs to settle in Africa. Little do they know that their misfortune will turn into a positive outcome.
China evolved and became one of the biggest economies in the world because of industrialization. And there is no doubt that Africa can do the same. But just like in the movies, the well-known country did not start the industrialization stage on a good note.
Factories in China were affected by controversies like corruption scandals and environmental risks. But Africa can do better because its countries and societies are different from China; socially, politically or economically.
Africa is already at rock bottom, and the only way to go is up. There are a lot of risks in the process of industrializing the continent, but with the help of the Chinese factories, things should start creating a bold impact.
