{"id":172842,"date":"2025-08-20T11:03:53","date_gmt":"2025-08-20T11:03:53","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=172842"},"modified":"2025-08-21T12:09:27","modified_gmt":"2025-08-21T12:09:27","slug":"as-one-door-closes-chinas-the-new-growth-engine-to-bank-on","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/as-one-door-closes-chinas-the-new-growth-engine-to-bank-on\/","title":{"rendered":"As one door closes: China\u2019s the new growth engine to bank on"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

Africa may not boast the largest economies or deepest pockets, but it has what many regions lack: energy, youth, abundance, and innovation. While the rest of the world gets older and runs out of steam, Africa\u2019s cities are expanding, consumer demand is rising, and resources remain plentiful.<\/span><\/p>\n

What this means is that in the next 25 years, over half of global population growth will emanate from Africa, shifting the currents of investment, infrastructure, and trade.<\/span><\/p>\n

Deep historic and cultural links are keeping the West engaged in Africa, but changing geopolitical dynamics are changing how its economic and strategic importance is viewed.<\/span><\/p>\n

First mover advantage<\/strong><\/p>\n

Recognising its potential as a new frontier for global economic growth early on, China was Africa\u2019s first meaningful investor in the 21st century. Over the past two decades, the Asian colossus has shifted its early focus on extractive industries to investing in renewable energy, railways, ports, manufacturing, digital networks, and healthcare. This commitment has helped lay much of the physical and digital backbone that Africa so desperately needs to grow.<\/span><\/p>\n

Across the continent, projects backed by Chinese investment have strengthened critical systems and enabled new markets. The <\/span>National ICT Backbone in Tanzania<\/span><\/a> has expanded broadband access, made e-health and e-learning possible, and strengthened e-government services. In Sierra Leone, the <\/span>China-Sierra Leone Friendship Hospital<\/span><\/a>, built over 7 700m\u00b2, continues to enhance healthcare delivery and played a vital role during the Ebola outbreak. The proposed <\/span>$1.4 billion upgrade<\/span><\/a> of the Tanzania-Zambia Railway furthermore promises to revitalise a key regional trade corridor for copper exports and improve transport efficiency in the region.<\/span><\/p>\n

Such stories about local projects may not dominate headlines abroad, but they stimulate markets, build skills, and engender the conditions for African businesses and consumers to thrive.<\/span><\/p>\n

A partnership evolving with the times<\/strong><\/p>\n

China\u2019s approach has evolved to match Africa\u2019s economic trajectory. The early years were defined by sovereign-backed megaprojects. Today, China invests in targeted, more manageable and commercially viable investments that encourage local participation and private-sector delivery while providing a clearer return on investment. This \u201c<\/span>small and beautiful<\/span><\/a>\u201d phase of its Belt and Road Initiative is well suited to Africa\u2019s priorities: building industrial capacity, expanding renewable energy, and accelerating digital transformation.<\/span><\/p>\n

The automotive sector offers a clear example. In South Africa, nearly half of the 14 Chinese car brands that are now active in the country, <\/span>entered the market in the past year<\/span><\/a>. BYD, one of China\u2019s largest electric vehicle manufacturers, plans to triple its dealership network by 2026 and expand its range of electric and hybrid models. Other manufacturers, including Chery and Great Wall Motors, are gaining ground by offering technology-rich, competitively priced vehicles tailored for African consumers. These moves are about more than sales: they are building supply chains, creating jobs, and positioning South Africa as a hub for electric vehicle adoption and assembly.<\/span><\/p>\n

Shifts in global trade are reinforcing these opportunities. As Western protectionism grows, including through US tariff regimes, China is expanding zero-tariff access for African goods and strengthening its role as a reliable trade partner. For African economies, this opens new markets and buffers against volatility in traditional export destinations.<\/span><\/p>\n

Why engagement matters<\/strong><\/p>\n

For African governments, China\u2019s role is pragmatic and strategic because it speeds up infrastructure delivery, broadens industrial bases, and opens new trade corridors. For businesses, aligning with this investment momentum can mean first-mover advantage in high-growth markets, improved access to logistics and industrial hubs tied into global supply chains, and opportunities to co-develop products and services for a rapidly expanding consumer base.<\/span><\/p>\n

However, simply being present in the right markets is not enough. Success depends on positioning: showing a clear understanding of local priorities, demonstrating long-term commitment, and framing participation as part of Africa\u2019s wider development story, which is why those that approach this relationship with clarity and purpose will gain both economic and reputational value.<\/span><\/p>\n

This requires communicating the partnership in a way that resonates with audiences in both Africa and China \u2013 replacing outdated narratives of dependency with a focus on mutual benefit, shared priorities, and tangible results. Because perceptions can shift quickly and decisively, telling that story effectively is as critical as the investment itself.<\/span><\/p>\n

Trade, not charity<\/strong><\/p>\n

Africa must be a partner, not a passive recipient of Chinese largesse by making <\/span>African Continental Free Trade Area rules<\/span><\/a> bite at the border, cutting clearance times, lifting product standards, and expanding export finance so manufacturers are able to deliver volumes. Manage debt in the open, and drop the tired \u201c<\/span>China asset grab\u201d narrative<\/span><\/a>, because outright takeovers are rare. The real work is negotiating clear, enforceable contracts that secure skills transfer and grow local capacity. The aim isn\u2019t investment for show, but investment that builds competitive industries and export muscle. That\u2019s how Chinese capital turns into jobs and exports.<\/span><\/p>\n

Looking ahead<\/strong><\/p>\n

Africa\u2019s annual infrastructure financing gap still <\/span>exceeds $100 billion<\/span><\/a>. No single partner can close it, but China\u2019s willingness, scale, delivery capability, and track record make it an indispensable player in meeting that challenge. <\/span><\/p>\n

For those who read the signs, the opportunities are boundless. The next decade will define the course of Africa\u2019s growth and decide who reaps its rewards. Businesses, investors, and decision-makers who seize the opportunity \u2013 and position their willingness \u2013 will help to write Africa\u2019s new story.<\/span><\/p>\n

Rachel Irvine is the CEO of Irvine Partners.<\/figcaption><\/figure>\n

Rachel Irvine, CEO of Irvine Partners<\/span><\/p>\n

*** The views expressed here do not necessarily represent those of Independent Media or IOL.<\/span><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Africa may not boast the largest economies or deepest pockets, but it has what many regions lack: energy, youth, abundance, and innovation. While the rest of the world gets older and runs out of steam, Africa\u2019s cities are expanding, consumer demand is rising, and resources remain plentiful.What this means is that in the next 25 years, over half of global population growth will emanate from Africa, shifting the currents of investment, infrastructure, and trade.Deep historic and cultural links are keeping the West engaged in Africa, but changing geopolitical dynamics are changing how its economic and strategic importance is viewed.First mover advantageRecognising its potential as a new frontier for global economic growth early on, China was Africa\u2019s first meaningful investor in the 21st century. Over the past two decades, the Asian colossus has shifted its early focus on extractive industries to investing in renewable energy, railways, ports, manufacturing, digital networks, and healthcare. This commitment has helped lay much of the physical and digital backbone that Africa so desperately needs to grow.Across the continent, projects backed by Chinese investment have strengthened critical systems and enabled new markets. The\u00a0National ICT Backbone in Tanzania\u00a0has expanded broadband access, made e-health and e-learning possible, and strengthened e-government services. In Sierra Leone, the\u00a0China-Sierra Leone Friendship Hospital, built over 7 700m\u00b2, continues to enhance healthcare delivery and played a vital role during the Ebola outbreak. The proposed $1.4 billion upgrade\u00a0of the Tanzania-Zambia Railway furthermore promises to revitalise a key regional trade corridor for copper exports and improve transport efficiency in the region.Such stories about local projects may not dominate headlines abroad, but they stimulate markets, build skills, and engender the conditions for African businesses and consumers to thrive.A partnership evolving with the timesChina\u2019s approach has evolved to match Africa\u2019s economic trajectory. The early years were defined by sovereign-backed megaprojects. Today, China invests in targeted, more manageable and commercially viable investments that encourage local participation and private-sector delivery while providing a clearer return on investment. This \u201csmall and beautiful\u201d phase of its Belt and Road Initiative is well suited to Africa\u2019s priorities: building industrial capacity, expanding renewable energy, and accelerating digital transformation.The automotive sector offers a clear example. In South Africa, nearly half of the 14 Chinese car brands that are now active in the country,\u00a0entered the market in the past year. BYD, one of China\u2019s largest electric vehicle manufacturers, plans to triple its dealership network by 2026 and expand its range of electric and hybrid models. Other manufacturers, including Chery and Great Wall Motors, are gaining ground by offering technology-rich, competitively priced vehicles tailored for African consumers. These moves are about more than sales: they are building supply chains, creating jobs, and positioning South Africa as a hub for electric vehicle adoption and assembly.Shifts in global trade are reinforcing these opportunities. As Western protectionism grows, including through US tariff regimes, China is expanding zero-tariff access for African goods and strengthening its role as a reliable trade partner. For African economies, this opens new markets and buffers against volatility in traditional export destinations.Why engagement mattersFor African governments, China\u2019s role is pragmatic and strategic because it speeds up infrastructure delivery, broadens industrial bases, and opens new trade corridors. For businesses, aligning with this investment momentum can mean first-mover advantage in high-growth markets, improved access to logistics and industrial hubs tied into global supply chains, and opportunities to co-develop products and services for a rapidly expanding consumer base.However, simply being present in the right markets is not enough. Success depends on positioning: showing a clear understanding of local priorities, demonstrating long-term commitment, and framing participation as part of Africa\u2019s wider development story, which is why those that approach this relationship with clarity and purpose will gain both economic and reputational value.This requires communicating the partnership in a way that resonates with audiences in both Africa and China \u2013 replacing outdated narratives of dependency with a focus on mutual benefit, shared priorities, and tangible results. Because perceptions can shift quickly and decisively, telling that story effectively is as critical as the investment itself.Trade, not charityAfrica must be a partner, not a passive recipient of Chinese largesse by making\u00a0African Continental Free Trade Area rules\u00a0bite at the border, cutting clearance times, lifting product standards, and expanding export finance so manufacturers are able to deliver volumes. Manage debt in the open, and drop the tired \u201cChina asset grab\u201d narrative, because outright takeovers are rare. The real work is negotiating clear, enforceable contracts that secure skills transfer and grow local capacity. The aim isn\u2019t investment for show, but investment that builds competitive industries and export muscle. That\u2019s how Chinese capital turns into jobs and exports.Looking aheadAfrica\u2019s annual infrastructure financing gap still\u00a0exceeds $100 billion. No single partner can close it, but China\u2019s willingness, scale, delivery capability, and track record make it an indispensable player in meeting that challenge.\u00a0For those who read the signs, the opportunities are boundless. The next decade will define the course of Africa\u2019s growth and decide who reaps its rewards. Businesses, investors, and decision-makers who seize the opportunity \u2013 and position their willingness \u2013 will help to write Africa\u2019s new story.Rachel Irvine is the CEO of Irvine Partners.Rachel Irvine, CEO of Irvine Partners*** The views expressed here do not necessarily represent those of Independent Media or\u00a0IOL.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":172844,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-172842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/172842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=172842"}],"version-history":[{"count":2,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/172842\/revisions"}],"predecessor-version":[{"id":172846,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/172842\/revisions\/172846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/172844"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=172842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=172842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=172842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}