Research busts China myths on investment in Africa
Private-sector companies investing in Africa tend to employ local labour and often local management, study finds
Most Chinese investment in Africa is driven by private sector Chinese companies looking for profitable opportunities. They tend to employ local labour and often local management. This is according to a study presented on the sidelines of the World Economic Forum (WEF) on Africa in Durban last week. The study by global management consultancy McKinsey provides a counter to widespread notions that China’s push into Africa reflects a "new form of colonialism" — as The New York Times called it in an article last week — driven by the Chinese state, using Chinese workers and focusing on extracting resources and flooding Africa with cheap imports. McKinsey found about 30% of the 10,000 Chinese firms operating in Africa are in manufacturing, 86% of their employees are local — as are 40% of their managers — and 85% of the firms are privately owned. China is by far Africa’s largest economic partner, ranking in the top five for trade, infrastructure finance, foreign direct investment (FDI) and ...
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