Africa still off the radar for local firms

Source:Agencies Published: 2012-9-24 23:05:04

When the economies of the West began to lose steam, Chinese entrepreneurs were encouraged to pursue emerging markets, particularly those in Africa. Currently though, few Chinese firms have started to expand in Africa, especially those involved in sensitive industries, such as mining.

Local companies have continued to ignore Africa largely because they have not yet seen the potential of its markets. The few Chinese firms that do have a presence in the continent already though are primarily involved in resource industries, such as petroleum and coal, which face export markets rather than African economies.

Yet, having large stakes in Africa's mineral and resource industries has raised concerns for Chinese business owners about African governments. Officials and politicians in Africa, it is often feared, may soon move to restrict Chinese firms from tapping resources within their boarders. African governments may also try to keep Chinese workers away from their countries for the fear that they will make the local labor market too competitive.

The author is Teng Liliang, an officer from the China-Africa Development Fund.



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