Africa, a vast continent where 60 per cent of the population is under 25, has become the focal point for a rising number of Chinese investors, shifting their gaze from traditional sectors such as infrastructure and natural resources towards the technology and fintech industries. The sheer size and demographic composition of Africa present intriguing possibilities, as originally reported by JevansNyabiage on SCMP.
Historically, Chinese investments in Africa have primarily centered on infrastructure projects like roads, railways, dams, mines, and oil. However, recent years have seen a noticeable shift, with more investors taking an interest in the African technology and fintech industries.
“There have been a lot of Chinese investors looking at Africa’s tech space. After all, Africa has 54 countries with over a billion people, there are many opportunities,” said Sandra Hua Yao, senior vice-president for Thunes, a Singapore-based fintech company that provides the infrastructure for cross-border payments in 35 African countries among its 130 global operations.
Key players, such as Opera, the web-browser unit of Beijing Kunlun Tech, have established significant operations in Nigeria and other African nations. Chinese smartphone makers like Xiaomi, Oppo, and Transsion are also marking their presence, alongside digital lending apps, cross-border payment platforms, and e-commerce sites like Kilimall.
The continent’s youthful demographic and rapid adoption of technology have proved to be a significant motivation for investors. “These are people born during the digital era. They don’t know what a 2G network is, they were born into 4G or 5G networks,” Yao said. “This is a very interesting market for any investor – not only Chinese.”
Significant interest has been drawn by fintech companies such as MFS Africa, a payment infrastructure provider. Dare Okoudjou, founder and chief executive of MFS Africa, highlighted the potential for African nations to draw insights from China’s fintech evolution over the past few decades.
Other fintech companies, like Kigali-based Centrika, are leveraging Chinese technology for transport payments and transactions. “Our customers do business with different Chinese companies, people send money there or we have traders who go to China,” said Yvon Gilbert Nishimwe, Chief Executive of Centrika.
Though there is still a long way to go before the level of Chinese investment in African technology and fintech rivals that in commodities such as oil, metals, and minerals, companies like Huawei Technologies and Transsion are spearheading the trend.
It seems the appeal of Africa’s tech space is growing for Chinese investors, diversifying their portfolios beyond traditional sectors. As this trend continues, Africa may well become a hotspot for tech and fintech investment, bridging gaps and building connections across continents.
(Source: SCMP)