i have been doing business in africa for 24 years
2024-08-29
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"if you don't go to africa, you will be afraid of africa. if you go to africa, you will love africa." this is what i often say to others. before 1999, i never thought that i would go to africa in my life. like many people, i thought africa was poor and backward, with constant wars. however, by chance, in 2000, i went to ghana, a west african country where i had no relatives, and started my entrepreneurial journey in africa. it has been 24 years in a flash. the 24-year experience has made me familiar with africa from unfamiliar to familiar, and i have a deep affection for it.before leaving the country in may 2000, i took officials from the ghanaian embassy in china to my hometown, zhuji, zhejiang, for the first time. i took them to the night market at night, but many people surrounded us and the road was blocked. i encountered a similar situation in africa later. in september 2000, when i came to the streets of lagos, nigeria, i was also surrounded by a group of black people and the road was blocked. today, chinese and africans are no longer strangers to each other.i have also witnessed the increasingly close economic and trade relations between china and africa. in 2000, the trade volume between china and africa was only us$10.6 billion; in 2023, the trade volume between china and africa reached a historical peak of us$282.1 billion. my country has been africa's largest trading partner for 15 consecutive years. the economic integration between china and africa is becoming more and more in-depth. in the early days, we built bridges and roads in africa, usually only doing engineering and not participating in operations. in recent years, chinese companies have undertaken the construction of the addis ababa-djibouti railway connecting ethiopia and djibouti and have participated in specific operations. this is a good phenomenon. it is better to teach a man how to fish than to give him a fish; if everyone fishes together in the wind and waves, the relationship will naturally be deeper.economic development is a consensus among african countries. there are 54 countries in africa, and the economic development levels of different countries are extremely uneven, with per capita gdp ranging from a few hundred dollars to tens of thousands of dollars. but for every african country, seeking development is a common consensus. this has become a huge force, which means that no matter who comes to power, they need to put social and economic development first. an obvious trend is that both those in power and the opposition are playing the economic card.the different needs of 1.4 billion africans, the extremely uneven development of various countries, the generally weak industrial base, and the large-scale economic development plan... all require huge supply. if africa's per capita gdp increases by $1,000, it is equivalent to creating a $1.4 trillion market. although this calculation is not very scientific, the potential of the african market is obvious.how do chinese companies compete for the african market? in africa, the number of chinese private enterprises far exceeds that of state-owned enterprises. however, because the individual projects of state-owned enterprises are relatively large, it is often misunderstood that chinese companies in africa are all engaged in mining or engineering contracting. in fact, most chinese private enterprises or individuals are mainly engaged in trade and opening shops. some people also open restaurants and travel agencies to receive domestic tourists. some are engaged in engineering contracting projects or factories, but the number is relatively small. in recent years, there are also some that have entered the e-commerce and technology fields, but the number is even smaller.in general, the industries engaged in by chinese private enterprises and individuals in africa are gradually transforming and upgrading, but they are faced with a relatively severe external public opinion environment from time to time. for example, some chinese oil companies occasionally develop oil fields in africa, but are accused of "plundering" by some western media; our mining companies have bought mines, but have not yet mined them, and are labeled as "destroying the environment" by them. this is a typical strategy of some countries to discredit china. in fact, some western countries have participated in and controlled the economic lifeline and important infrastructure of african countries, such as power supply, port terminals, road and railway operating rights, aviation operating rights, and financial operating rights, in various ways, both openly and covertly.despite this, we should still be deeply involved in africa's economic development. africa's overall development level is relatively low. many africans have never been abroad, and many have not even left their own province or smaller administrative region. they know little about foreign brands. therefore, new products entering the african market have the opportunity to establish their own brands in a relatively short period of time and have a considerable number of audiences. chinese products are cheap and good in quality, and can better meet the daily lives of the african masses with low per capita income. in some remote mountain villages in some african countries with only a few hundred people, you can find small shops selling chinese products. all of these have created great opportunities for chinese brands to open up the market in africa.in many african countries, advertising on television, newspapers, etc. is still very effective. because most africans have limited sources of information, the media has become an important channel for them to obtain product information. many africans believe in advertising very much, and advertising costs are not expensive.in addition, chinese companies entering africa need to have professional market and brand development plans. they need to have a reasonable positioning for their products, which should be consistent with the actual situation of their own development; they also need to find the right market. if they are mid-range, they should enter the mid-range market; if they are high-end, they should enter the high-end market. it is best not to expect to take all. there are 54 countries in africa, and you need to choose a country that suits you to expand the market. each african country has different cultures and consumption habits, so brands also need to have a sense of localization. you can consider establishing different localized brands in different african countries, or regional brands, because based on regional integration agreements, it is more convenient for products to circulate between member countries.brand stories are also important, but they should not be too complicated, nor should they be given too many meanings, let alone be all-encompassing. they should be easy to remember and understand. for many african people, compared with listening to stories, they are more concerned about three points: product quality, cost-effectiveness and after-sales service. this has been the case for many years. (the author is vice president of the china-africa people's friendship association, advisor to the president of djibouti, and chairman of shanghai dazhilu holding group)▲
