Author: Jing Gu.

A new dynamic presence is spreading rapidly and widely across Africa: that of Chinese private enterprises. For these firms, Africa is ‘the last golden land’ of economic opportunity. Based on the most extensive survey to date of Chinese private firms, business associations and government officials across China and sub-Saharan Africa, this paper explores the critical questions of why these enterprises are investing in Africa? What are their perspectives on Africa’s investment climate? The study shows a growing number of firms that contradict the stereotype of Chinese firms in Africa. Pushed by intense competition within China’s domestic marketplace and pulled by the glint of new opportunities, many small, private manufacturing firms are heading to Africa quite independently of the Chinese government. They grasp this opportunity in a ‘three jump’ pattern. The first of these ‘three jumps’ are better known, from doing business within China to exporting to Africa; and then from exporting to Africa to investing in production in Africa. The third jump is less familiar: to investing in industry parks in Africa.