Chinese firms chase Africa’s consumers as resource investments plunge 40%

Chinese business dealings in Africa, once dominated by state-owned enterprises, are now increasingly shifting toward consumer products from the private sector.

While Africa’s faster-growing economies, such as Kenya, Uganda and Zambia, see annual growth rates of 4.8%, 6.4% and 5.8%, respectively, the GDP of the overall continent’s 50-plus countries is 4.1%. That is according to IMF’s economic outlook report last month.

Chinese investments in Africa’s resource-intensive sectors have declined by roughly 40% since their 2015 peak, amid weaker returns and falling construction revenues in traditional commodity industries, according to Rhodium Group China Cross-Border Monitor released on Nov. 18 this year.

Meanwhile, China’s exports to Africa have surged by 28% year-on-year over the first three quarters of 2025, following a 57% increase from 2020 to 2024, the report said. Most of those products are higher-value-added manufactured goods such as electronics, plastics and textiles.

“In the early days, Chinese companies that went over were doing a lot more infrastructure, and they were also doing a lot of the natural minerals mining,” said Joe Ngai, chairman of McKinsey Greater China.

“In the last few years, I think people are trying to think of the African consumer market,” he said. But he cautioned that market fragmentation and thin margins can make these ventures difficult. 

The shift comes as the first G20 summit ever held on the continent kicked off over the weekend in South Africa. While the U.S. only sent its acting ambassador, Chinese Premier Li Qiang represented Beijing, creating more high-level opportunities for business discussions.

In contrast to prior years when people in China didn’t know much about what was happening in Africa, today there are “more business trips, sending more employees overseas. It just feels more involved,” said Heather Li, founder and China-Africa consultant at The Dot Connector. She noted that, increasingly, larger Chinese companies are sending decision-makers to Africa to explore specific market opportunities.

Due to power shortages in West Africa, Li said Chinese solar products are welcomed there, while medical supplies, along with baby and household products, are also popular across the continent.

Already, Chinese smartphone company Transsion has built its business in Africa over the years, while telecoms giant Huawei and household appliance company Midea have also expanded in Africa.

In July, Chinese state media reported that the Midea group signed an agreement with the Confederation of African Football, which will increase investments in the area. The company has already built factories in Egypt and has plans for more.