Sino-African economic partnership is paying off, boosting economies by enabling the continent to diversify its sources of investments, a new report released by a global management consultancy firm on Wednesday reveals.

The survey by McKinsey Africa finds that China has remained a top five partner of Africa in terms of trade, investment, infrastructure, financing and aid and no other country matches this level of engagement.

Kartik Jayaram, a senior partner and co-author of the report, said Chinese engagement with Africa is set to accelerate.

The study, titled, Understanding the rhythm of Chinese Business in Africa, was conducted across eight countries that together make up about two-thirds of Sub-Saharan Africa’s GDP, finds that there are already over 10,000 Chinese firms operating in Africa — four times the previous estimate.

The report aims to provide a fact-based picture of the Africa-China economic relationship.

Its foundation is a large-scale data set about the economic relationship between Africa and China, including on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms and factories spread across eight African countries that together make up approximately two-thirds of Sub- Saharan Africa’s gross domestic product (GDP).

According to the study, about 90 percent of these are private firms, of all sizes and operating in diverse sectors, with about a third in manufacturing.

“These firms are bringing capital investment, management know-how and entrepreneurial energy to the continent, and in so doing, are helping to accelerate the progress of Africa’s economies,” it says.

The China-Africa relationship has ramped up over the past decade with trade growing at around 20 percent per annum.

Foreign Direct Investment (FDI) has grown even faster – at an annual growth rate of 40 percent, says the study.

The study says China is also a large and fast-growing source of aid and the largest source of infrastructure financing, supporting many of Africa’s most ambitious infrastructure developments in recent years.

With a presence in Africa of over 20 years, McKinsey & Company has offices in Ethiopia, Kenya, Morocco, Nigeria, South Africa and Angola seeks to shape strategy and strengthen operations for players in major industries, and help deliver better outcomes in education and health care, in over 40 African countries. Enditem

Source: Xinhua/